pitter
1 posts since
Aug 5, 2008
11.
Re: Need Financial Help? Loans and Lines of Credit? I can help Aug 6, 2008 3:53 PM
The truth is that it is difficult
for a startup business to borrow money as a small business loan -- especially
without assets and without experience in the business.
However, if you're applying for a loan and if it is a big amount, banks and
even the [url=
http://www.revenueadvance.com]Small Business[/url] Administration may consider the following factors:
- A business plan explaining what the business is
- Your background and experience in the business -- in my experience, this is
KEY in the eyes of the bank because they want to make sure that you know what
you are doing and that you can make the business work. If you don't have any
experience with the business, have someone on board that knows the business to
give banks assurance that someone will guide you
- Your credit factors because it shows your dependability and how well you
handle credit. They will do a credit check on you and poor credit history may
be frowned upon, or even reason for the disapproval of your loan application
- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show
collateral. They want to be guaranteed that somewhere somehow they can get
payment from you
- Condition or terms of loans. Banks would want to know three important things:
"How much money are you requesting? What will it be used for? and For how
long will it be needed?" Banks oftentimes prefer to approve loans for
items that can be identified, has lasting value, and can be repossessed and
sold if things fail.