Facts On Small Business Financing
People really appreciate a well run business, and you will have success when you do everything that you can to make your small business into something great. Set up a good plan for it, and then watch it grow as you use the small business loans you have taken out to do a lot of good there.
Fact number one: If you’re planning on starting and running a small business in this country, there are three major hurdles you will need to overcome if you and your team don’t have “deep pockets;” money, experience in your chosen business and location. In addition, having the right equipment required for your startup business might pose a challenge unless you’re properly educated on the opportunities of acquiring equipment loans from your trusted bank or other financial institution.
As an additional sideline, you will also be required to provide reams of paperwork to your lender; and in some cases, collateral you can pledge to help guarantee the deal. Look, folks. It’s vicious out there in “business startup land” and to be quite frank, these days there are more failures than successes. Simply stated, you won’t be able to survive and keep your head above water, if you join the crowd and pick a spot for your small business Yogurt shop with three others not more than a block away. Ergo, if you believe you have a small business that’s a winner, just use some common sense about your location. Place your business where it’s visible to people who are walking and, if possible, where the driving traffic can see your sign.
Where The Money Is To Finance A Small Business!
Attention Small Business Wannabes! Whether you’re currently operating a small business and need some fresh cash to expand, refurbish, make some necessary improvements or still considering a new small business in your town from the ground up, you’ll need money. Other than your local bank where you have accounts, the “bank of mom and dad” or a business loan from friends, there are two major government loan program money outlets that do most of the financing in this country.
The SBA and USDA. However, not everybody can get a loan of this type for a small or large business, so take care when applying. Also, remember that these two entities do not loan money, they only guarantee the loan for the lender who actually hands you the cash. If you’re accurate in submitting paperwork and provide what is required, you have an excellent chance of being successful.
Tips And More Tips On Putting Your Business In The Best Possible Light!
- Obtain a current copy of your credit report from all three reporting agencies. This means everybody involved with signing on the loan. Most financial companies will review your report before anything else.
- Get some essential financial statements on all concerned from the past three years. You know, stuff like income statements, net worth…etc.
- Make a projection of future operations if this is a new business.
- Provide an executive summary of each business owner as well as management members, if any. Also, a short description of your business, amount of funds needed and how you not only will use the money, but how you’ll pay it back.
Note: If you choose to take the SBA loan path, go online and fill out the SBA Form 4. It’s self-explanatory. If you choose to apply for a USDA Business Loan, visit them online as well, and click on the section that offers business loans for the necessary paperwork.