There are numerous ways a business can get a loan to have it off its feet; however not all those ways are safe and healthy. With online ventures seeming too risky at times when giving personal information or too slow, a person can easily want to turn to family and friends. However family and friends might help and give the money to the venture in the name of no interest paid, problem comes in if there is an emergency and they want the money back promptly, thus the need to get a loan from a bank.
Business plan with budget
No bank can offer a lending to a business regardless whether it is large or small if it does not have a business plan. A business plan is key as it shows the bank clearly what the vision and the way forward of the business is. However when giving an over view being too optimistic will just make the loan request be reject. Instead show how the business intends to use the money given to create just enough profit to pay back the loan and continue moving on.
Business financial statements and business return tax
If the business has been operating for a while, its financial statements are key to getting a small business loan. This way the bank can clearly see the profits, losses and the clients that the business has. Business return tax should also be presented into be looked at by the bank. Showing that the business pays its debts to society, the bank will be more willing to give the money needed. If the business is business is making losses clearly show what is intended to be done to make a turn around. If it’s making profits show why it needs the money together with the business plan
Personal financial statements and personal return taxes
Personal financial statements and personal return taxes by the business owner are also a major requirement by the bank. This shows the credit history and the ability of the business owner to pay for the money if the business does not succeed. However if the credit history of the business owner seems to be bad, the bank might ask for security as collateral if the business will not be able to pay. Thus the business will be more likely to get the small business loan it requested.
Go to the right person
A bank usually has very employees and as such specific ones tend to deal with loans for small businesses either startups or capital for expanding. Stepping into the bank dress professionally and have all the needed statements and business in place, this way the business proposal is likely to get looked at. However even though the business might have everything in order some banks might still find it hard to give lending for small businesses, thus the need to go to another bank and another bank until the right bank goes through and gives the small business loan required.
In the event that the small business loan is approved the business and the bank should come to an agreed period of time that the money should be returned to the bank. Thus enabling the small business grows without the worries of losing everything.