Five Steps to Getting a Business Loan
Whether youíre starting a new business in Emden IL or expanding your existing Emden IL business, a business loan can provide you with the funding you need provided you can actually get that business loan. If youíre attempting to get a traditional bank loan for starting or expanding a business in [statetitle], you'll have to jump through a series of hoops and execute each jump flawlessly. Following these steps can help you organize all your materials and make a winning application for a business loan.
Estimate the Size of the Business Loan You Need
Asking for the right amount of money is important. It tells the bank that you've done your homework and made a realistic assessment of your expenses and needs. Ask for too little or too much and the loan officers will rightly question your ability to manage and run your company efficiently.
Write a Business Plan
Your business plan is a key component of any business loan application. Most lenders will want to see a full business plan, complete with three years of income statements and a 1-year projected cash-flow statement. If all of that planning gives you hives, get help from the local SCORE office or the SBA.
Figure Out Where to Apply
Another reason for figuring out the amount of money you need for your startup or expansion is that it will help you decide on the most likely provider for your business loan. In general, most traditional banks won't be interested in loaning less than $25,000 for business purposes. If you need less than that, look for non-traditional lenders and microloan providers.
Prepare Your Business Loan Package
Your loan package will include your business plan and all supporting documents, including income projections, your personal financial information, your personal tax statements, your resume and that of your business partners if you have them and information about your business, including sales contracts and business purchases.
Submit Your Business Loan and Wait
If youíve applied for an SBA express business loan, you could have your response in as little as 36 hours. In most cases, though, expect to hear from the bank about your business loan within about two weeks.
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