Tuesday, February 26, 2008

Tips for Small Business Loans

Often, funds are needed by small business owners for expansion, advertising or for some other purpose. Whatever the reason, there are a lots of financing opportunities available. But to get an approval for your loan application, you need to meet the necessary criteria.

* Your chances of obtaining a small business Funding dramatically increase if you have a detailed and convincing business plan. Any lender would want to confirm whether a customer seeks your products or services and how much profit you make. A business plan provides an insight into your management capabilities, information about the market in which you operate, and the kind of business you are.

* The higher the rate of return you can offer to your investors and the faster you can produce it, the more your chances are.

* The business plan must contain information regarding what sort of competitive edge your business has over your competitors.

* It’s important to get a copy of your personal credit report and check it thoroughly for any inaccuracies. All accounts should be current and there should not be any out standings. In case there is any derogatory information, it is better to explain in written exactly what caused those problems and why the problem won’t take place again in future.

* Get a photocopy of all your business records of the past three years such as financial statements, tax returns slips, interim year-to-date financial statements etc. Get them signed off by your accountant or tax advisor.

* Be precise and clear about how much funding you require and get the paperwork done to show why you need it and how you will pay it back.

Normally it takes several weeks to close a loan. And once a loan gets an approval, it can take 30 to 60 days to fund. But if you are looking for quick small business funding then there are investors in the market who provide small business loans hassle free and quite fast probably within 10 business days.

Normally these lenders don’t seek any documents. Instead loan is granted based on your monthly credit card volume. You easily qualify for a new or a small business loan if you process a minimum of $4,000/month. After you obtain a small business funding from such lenders; it’s left up to you how you utilize those funds.


Sudipta Das said...

Thank you Antony for giving us these wonderful tips for gathering funds for our small business, but I was wondering how should we apply for business grants so we can get some free money from the government for our business.

Freddy MacAdams said...

Nice post. I'll keep it in mind because I plan on running a business soon. I've been thinking about it for a long time now, and I can use all the help and advice I can get. Anyway, lately I've been thinking about buying a business instead of starting one from scratch. Any suggestions? Advice? Thanks.

Karen Bowery said...

@Freddy -- I suggest checking out some other online resources. There's one called BizTrader.com, which is an online global marketplace where you can buy or sell a business, since you're interested in that. It also has other advice, and you can use it to find a lender, broker, accountant, etc.

You can also check out local small business groups. They can be very helpful, and it's always good to network.

Good luck!

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Anonymous said...

Thanks for the info, i think that Government Grants must be available to everyone here,
or Free Grant Kit also, but
Free Grant Kit is much better,thanks.

Anonymous said...

Great Blog For Grants Free government grants here,
or more Free grant kit here,For
College Grants click on link,as for
small business grants stop here.