To Get A Business Loan

Money is now available.  If you were turned down for a business loan, you should ask again.

The first question banks ask is how you intend to service the loan. This means, "Do you have the money to make the monthly payments?"

When you ask for the loan, be prepared.  Bankers need to justify your loan to their superiors.  In order to make it easier for the loan officer to justify giving you the loan, you should:

Prepare a short business plan, which should include a description of your business.

Prepare a spread sheet of the last five years of your business.  Be certain to include the amount of gross revenue by year.  Have the income taxes which support this copied to give to the banker.

Provide an Income and Expense statement.  Your accounting program should do this for you.  Chose the I & E which covers an entire year and which can be printed on one or two pages.  Do NOT use the more detailed I & E.  Do this I & E for each of the last 5 years.

Make certain that you include a copy of your business property lease, if you have one.

DO NOT WORRY if your business has decreased since January 2008.  It is well known that the recession started then.

Give the banker any other requested information.

IF YOU ARE STARTING A BUSINESS, or if the bank refuses your loan request, the U.S. Small Business Administration has loans, especially for women and minorities.  There is a lot of paperwork associated with these loans, and the loans take time to process.  Once you become an officially approved minority or woman owned business you can also get priority for government contracts.

Good luck!