Changing environment, learning new language and new culture,being a wife and a mother, living far away from families and friends, I have come to share my views, thoughts, feelings, ideas on so many things that I cherish.

January 25, 2012

How to Apply for a Loan

Starting or trying to sustain an ongoing business can be very exciting. There are lots of things a business owner would like to put in place to make sure that his/her business is operating very well. One of them is financing. In order to keep your business operating consistently and successfully, it must have financing which is in form of a business loan. Business owners can apply for business loans through banks or other financial institutes.
If you are a small business owner and has already been turned down for a conventional commercial loan, it would be better for you to apply for a Small Business Administration Loans. Business lending is very risky for banks, the SBA helps to reduce some of the concerns a lender may have about granting you a loan.

If you want to apply for a loan, here is a list of how to apply:

1. Review your business profile to ensure that you qualify for a loan

2. Evaluate your personal profile before you apply for a loan

3. Prepare a loan proposal regarding your  business. This is your business plan which should include:

      a. a written information about your business describing type of business and  legal forms

      b. annual sales, number of employees, length of time in the business, ownership structure

      c. a description of how the loan proceeds will be used, the purpose, amount of loan  and type of loan requested and description of  how you will repay the loan

     d. your management resume,  experience and other common elements of a business proposal

4. Go on-line and visit different SBA websites and choose the one  with the program that is best for your business. Get all details on the application process.

5. Make an appointment and visit the SBA lender you have chosen. Be sure to go with your loan proposal, financial statements, SBA forms (you can print them from their website and fill them out before hand),business registration certificate, a description of the collateral that will be used to secure the loan, description of equity in the business potential to borrow funds and availability of any cash. 

Wishing you luck on your business endeavors. 

I am participating in a blogger campaign by Bucks2Blog for SBA Loans and
was compensated. However, the views and opinions are my own.

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