Sooner or later most small businesses need to get a small business loan, whether to get the operating capital for business startup or to finance an expansion. But whether you're approaching a bank or a friend for a business loan, the lender will have the same expectations.You can greatly increase your chances of successfully securing a loan by being prepared to meet those expectations.Put yourself on the other side of the desk for a moment. If someone asked you for a small business loan, you'd want to know exactly why he or she wanted the money and what the chances were that he or she would repay the loan in full and on time.So the key to getting a loan is preparation. First, gather together the documents that will help persuade the lender that a business loan is necessary and that you are a good risk.
Small Business Administration ( SBA )
Keep in mind that SBA and BusinessUSA do not provide grants to start or grow a business. Some federal grants do exist, but are only available to certain non-commercial organizations. Read more about grants here.
*You can also visit the SBA.GOV Website for Information on Minority Loans & Funding
What is Crowdfunding?
the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.
*Here you will find 10 Crowdfunding Companies and there requirements
What is a Angel Investor?
Angel investors might be professionals such as doctors or lawyers, former business associates -- or better yet, seasoned entrepreneurs interested in helping out the next generation. What matters is that they are wealthy and willing to invest hundreds of thousands of dollars in your business in return for a piece of the action.
* Here you will find 100's of Investors across america. You will find ones in your region.
What are Grants?
Grants are non-repayable funds disbursed by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal or an application is usually required.
Amber Grants: Supporting Women in business.
A business plan
The business plan show the lender not only why you want a small business loan but what you plan to do with the money.
Cash flow projections
What's the first question any lender has? Will you be able to repay the loan. Your business's cash flow projections give lenders concrete financial data that they can use to assess this risk.
A statement of your personal financial status
A list of your personal assets and debts to give the lender a fuller financial picture.
CREATE YOUR BUSINESS PLAN
A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.
Your executive summary is a snapshot of your business plan as a whole and touches on your company profile and goals.
Your company description provides information on what you do, what differentiates your business from others, and the markets your business serves.
Before launching your business, it is essential for you to research your business industry, market and competitors. article Organization & Management Every business is structured differently. Find out the best organization and management structure for your business.
Service or Product Line
What do you sell? How does it benefit your customers? What is the product lifecycle? Get tips on how to tell the story about your product or service.
Marketing & Sales
How do you plan to market your business? What is your sales strategy? Read more about how to include this information in your plan.
If you are seeking funding for your business, find out about the necessary information you should include in your plan.
If you need funding, providing financial projections to back up your request is critical. Find out what information you need to include in your financial projections for your small business.
An appendix is optional, but a useful place to include information such as resumes, permits and leases. Find additional information you should include in your appendix.
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