FunnyBear asked:
I’m looking for info on the loan process for small buisnesses. I’m going to stat a store in about a year from now. By what criteria do the banks go by when approving a loan?
I’m looking for info on the loan process for small buisnesses. I’m going to stat a store in about a year from now. By what criteria do the banks go by when approving a loan?
I would recommend going to. They have a free directory of over 4,000 lenders and investors that can be searched completely free. They have a great service. You can run a free capital search here:. I also recommend that you check out their Business Finance Coach which will show you how to build your business credit so you aren’t personally liable for the loan. It allows you to get approved for the business loan you need. Here is that link:. I hope this helps.
Have a business plan
First step: Do a comprehensive business plan: you need to show that your business will create a profit, what you require the funds for specifically, how much you need ,how you will pay for the loan and when.
It would help to have some form of collateral, e.g property,shares etc. Another source of income would help too.
But overall, if you can sell your business plan with enthusiasm and you have a sound proposition, you should go a long way towards getting funding.
Check out the web pages suggested in other answers for different lenders, put a great business plan together, dress sharp, think positively and good luck!
The banker will be looking at the risk of the loan. What is the source of repayment, your business & management history to run a business, your personal credit history, your business marketing plan, and collateral to secure the loan.
The more you can do to reduce the risk the better your chances to get the loan. Books & magazines do not offer good collateral for a loan. The only thing left is book racks.
Some of the book vendors offer short term line of credits to sell their books. If you own a home, a home equity line of credit is used as supporting collateral.
Good Luck. Check out the Small Business Administartion for helpful information on starting a business. There is a lot of good information that is free.