All businesses need a steady flow of cash to ensure smooth operations that will in turn improve the profitability of the business. If you find that your business is in need of additional funds for a steady cash flow, here is your step by step guide in getting a business loan.
1. In getting a business loan, it is important to gather all the information that you can about the loan. This is where you will be grateful to the internet as it offers valuable and rich sources of information that will help in making sound and prudent decisions.
2. Don’t just grab the first financial company that you may come across with no matter how viable and practical the terms are. You must evaluate at least three to five financial companies and see how their services compare with one another.
You also have to make sure that you understand their terms and conditions especially and particularly the fine prints. Don’t hesitate to ask if something is not clear to you. It is your right as a prospective client to clear all gray areas and financial companies are duty bound to tell you how they will be able to meet your needs and wants as their prospective client.
3. If you are already considering one or two financial companies in getting a business loan, you must also be ready with the essentials such as your business documents. If you are just starting your business, you may need to present your business plan on top of other documentation requirements. For existing businesses, you may need to submit your business permit as well as other pertinent documents required by the financial company of your choice.
4. Depending on the type of business loan that you are getting, you may need to present or submit guarantee or collateral so you have to make sure to have it ready and easily available.
5. You may also want to upgrade the standards of your business or add some prestige to it to up its value and secure better loan from the effort. Building a website is a good way to do so and you may earn even more with your website up and running. Besides, what business on this age does not have a website?
6. Increase the chances of profitability of your business. This is crucial in getting a business loan it shows the financial companies of your repayment capabilities. The higher your capabilities are, the higher the amount of business loan you can get from these companies.
Getting a business loan this day doesn’t have to be complicated. You can now quickly avail of the necessary funds in the form of a business loan either to start up your business or to use it for steady cash flow to expand your business.
With the ready accessibility that the internet provides, getting a business loan can almost be instantaneous as there are several online services you can avail of the loan. As easy and as simple as a few clicks, you can get your business running or grow it bigger and better. The choice is yours.
Business Loan FAQ:
Question: I need a small loan for business?
I only need a loan of about $2000 to start off a small business. This seems like a very small amount to what the SBA is willing to offer; is there a way to borrow this amount without a collateral, especially if I am pioneering this new business where most have not chartered?
Answer: For my at home business I borrowed around $1200 and just applied for a personal loan instead of a business loan. Try that route. Always go through a reputable bank and watch out for those weird websites or emails. If it sounds too good to be true: It Is!!
Question: I need a loan to start a business and I’m a felon.
I’m a female, on probation, never been to prison. But I would like to start a business. How do I get a loan?
Answer: The SBA is a good place to start. Contact banks near where you live who are SBA lenders. I believe the other poster is correct that you must wait until you are off probation. It will be virtually impossible to get any type of conventional loan while you are subject to being violated.
There should be a chapter of SCORE near you. I’d also suggest you pay them a visit, have a mentor assigned, and discuss your plans.
You will have to prepare and submit a business plan. Depending on what type of business you will start and how much you want to borrow the plan need not be more than a few pages long, but it does need to convincingly show that your idea will make enough money to pay the loan back and that you are capable of successfully running a small business. It can’t simply be “I thought I’d like to give this a try”.
Question: If you claim bankruptcy does it make it hard to get a business loan or loans in the future 10 years after?
Answer: Bankruptcy does make obtaining credit more difficult immediately after the bankruptcy. By the time it ‘drops off’ your credit report after 10 years, it will have ZERO impact on your score. If your history AFTER the bankruptcy is clean, you should be able to obtain a loan within 4 to 5 years.
Question: Need to find someone to loan me $500,000.00 (US Dollars) for a start up restaurant deli business?
Repayment would be over a 10 yr period
Answer: Find an investor. 99.99% of investors just won’t lend you the money though. They will want to see that you actually know what you’re doing and they will want to know your business plan and how much they’ll profit off of lending you the money.
As for a loan, if you try to get a business loan, banks are gonna require that you have established credit and an established job so you can repay the loan. No one will lend you the money straight up w/o you having an already decent income as well as assets(items/stocks/bonds that you own that can be turned into cash) in case you default. The business venture isn’t a “to have a business is to make money” kind of thing. You already have to have money to back yourself up.
Question: Need Help Starting My Own Business?
I am wanting to start my own business. I have everything planned out and ready to start, have an office to use and have got a work van organized. The only problem is I don’t have money to fund it. If I want a business loan from the bank for 10k they want me to put 3k of my own money down which I don’t have. I have got a meeting about a small business grant with business gateway next week but does anyone have any other ideas about getting money?
Answer: At 30% investment on your part, the bank is offering you a reasonable deal. Most investors expect you to put up at least 50%. If you have an office and a van, what do you need money for? Is it possible to ask customers for a deposit before you start working for them so that they fund your materials for your first few jobs?
You mention business gateway. Have you also spoken to Business Link? They’re very helpful on funding, too.
If you really need the funding and have to find $3k for the bank, try asking friends and family. If 6 of them put up $500 each, you’d have the money. Make sure you let them know when they can expect repayment.
Question: Has anyone had any experience with a business cash advance?
I need cash for my business and cannot get approved for a loan. I found bankcardfunding.com on google. Does anyone know about this company?
Answer: Well to answer your first question… Yes, I’ve had 2 merchant cash advances with my company. They are very good if you need money now and cannot get a bank loan. What they did was take 20% of my credit card sales until the balance was paid off. So if I made no money one day, they didn’t get paid that day (with is another plus). The down side is that you are going to pay more money than getting a loan, but another plus is that you pay it back much faster. I think my last advance was paid back in 6 months.
As for your second question… Yes, I do know about bankcard funding. I used them both times for my business cash advance and I recommend them.
Question: Do I have any chance of getting a business loan?
My husband and I are thinking about purchasing a small business. We have no business experience. Our only major debt at this time is a mortgage on our home. I estimate we’d need a loan of approximately $15,000 for the business. Do we have any chance of getting a loan? I don’t know how likely it is that a bank will be willing to lend us money for a business with no prior business experience.
Answer: Yes, it is possible to get a loan without previous business experience. I would really advise for you to create a business plan and present that to the bank. A business plan will show the bank or investor that you have fully though out the process and researched your potential expenses, as well as the competition. You can include the previous owner’s financial statements and include forecasting for what you expect in the upcoming years. The more evidence that you can provide that you know what you are doing and that you have solid plans, the more likely you will get the loan.
With the current economic climate, it is a bit harder to get funding so there are alternative ways to receive a loan. You can try prosper.com if you or your husband has a good credit history. I have personally been a lender on prosper.com for about 2 years now – it is a reputable peer-to-peer lending site. If your credit is not very good, then you will end up spending more on interest than a bank but it is a great backup plan.
Question: I am a ex felon. I was in prison for theft. How can I get a business loan?
I already have an established business. I just need the money to expand. I don’t have bad credit. I just have no credit. Is there any programs, grants, or loans that I can get to help me?
Answer: The past felony conviction won’t get in the way of your right to apply for a business loan. Once you have served your time, then you are free to apply for grants or loans just like anyone else.