How To Get A Business Loan

Getting a business loan is not easy especially in these times. There is a huge demand for money. Contrary to what their representatives say traditional banks are not making many loans with reasonable terms.

Money is available but it is a sellers market and all of the following rules apply if you want the loan.

You must be able to demonstrate that you need the money and what it will be used for and how this money will enhance your business.

You must prove that you have the experience to use the money to achieve the objective.

You must be able to prove that you can pay the money back

You must have sufficient collateral.

You must be willing to divulge to the lender all of your business and personal and financial information including bank statements and tax returns.

You must have a business plan which includes every detail and contingency including contingencies for untimely deaths, disabilities and an exit strategy.

The business plan must be summarized in a one page summary called an executive summary. The effectiveness of the executive summary will determine whether the loan underwriter will read further, issue a term letter or dash your hopes in the trash can.

Your personal credit score must be close to 700.

This applies to anyone who has a 20% or greater ownership interest in your business.

You must realize that you get no benefit of the doubt.

Let me know if you have any questions or if we can assist you in getting a business loan.