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Business sometimes find getting small business loans to be a tall order, however, it is not impossible. Banks are looking for specific types of information from its potential borrowers. Provide this information and a small business loan could be made available to you and your business.
A business plan is required to apply for a business loan from a lender. The business plan should outline your business idea, include at least two years of projected financials, a detailed listing of how the borrowed money will be spent, marketing information and the resumes of the principal owners of the business. The plan should also outline how the business intends to repay the money the bank loans it.
Another important piece of information is how much the business intends to borrow. This amount should be calculated by creating a list of all items that are needed to launch the business, such as equipment, supplies, vehicles and buildings. Wages should also be included in this list, and as a rule of thumb, a startup business should have at least six months of salary in reserve.Be careful that the amount you request matches the amount you stated you needed in the business plan. Banks want to make sure all the money is accounted for.
Lastly, prepare your presentation for the loan officer in advance. Be enthusiastic about your business and be prepared to answer the questions the loan officer asks.
|Jennifer Mathes, Ph.D.|