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    9 Replies Latest reply on Feb 27, 2013 9:12 AM by Moderator Berta

    who can i get loan?

    lance martin Scout

      I have a small business. Now i want small business loan for my business. Could you please suggest me the right and easy way. 

        • Re: who can i get loan?
          treys0ccr Adventurer

          What type of small business are you starting? Also is the business going to be based in the U.S? If so there are a few options that you could take to apply for loans and grants with the US government. Let me know if you want to take this route and I could send you a link to a great online lender that lets you apply for free and does not do any credit check. Keep in mind that you should have a very well written business plan as this is a huge determining factor when applying with any lender or organization.

          • Re: who can i get loan?
            D2x2993 Adventurer

            The first thing you want to determine is can you qualify for a loan. Loan officers look at five primary things.

            1.  Ability to Repay - Lenders will look at the discretionary earnings from the business and a secondary source, typically collateral, as a guarantee for repayment.

            2. Credit History -Lenders will consider your credit card history and how you handle debt.  In addition, they may review your real estate holdings, your personal loans and ensure that you have filed and paid your
            personal income taxes.   

            3. Equity Investment - Strong equity demonstrates that an owner is committed to the business.  Lenders will carefully analyze the debt-to-worth ratio of the loan applicant to compare how much is being borrowed (debt) in relation to how much the owner has invested (worth).  Owner equity includes cash they have invested in the business as well as retained earnings built up in the business. Most lenders will also require an owner to invest 25% - 40% of their own money in a business before approving a loan. 

            4. Working Capital - Working capital is produced when your current assets are greater than your current liabilities.  Current assets are more easily converted to cash and provide a margin of protection to pay financial obligations due within one year.  Working capital is used to measure the financial viability of the business.

            5. Character - Lenders will also consider non-financial factors, such as managerial capacity and appropriate business experience, when approving a business loan.

            Use this link to find some alternative sources for small business loans: www.partnersindemand.com/content/financing-business-loans

              • Re: who can i get loan?
                hughconn Newbie

                In today's environment it is important to match your financing request with an appropriate lender.  Working capital loans can be hard to get without collateral, for example.  Amount of request is also important in sending the request through to the right institution.  Let us know what you are looking for and how much and we can help you be more efficient by targeting the request to the best place.

              • Re: who can i get loan?
                koln123 Tracker

                It would be helpful to know some more facts to be able to answer this questions best specifically for this persons such as, how long have you been in business?   How much, roughly are you interested in?  What type of business is it?  You may have a preferred amount.  Do you have a minimum amount?   What is the credit like of the owners?   In general, requests under $50K can often be obtained without financials and requests over $50K require financial statements.   Thank you, SBLD

                • Re: who can i get loan?
                  phanio Pioneer

                  What do you plan on uing those funds for?  Most of the time, business loans are based on use. After that, the focus turns on repayment. Do you plan to repay the loan from overall cash flow or from the conversion of financial assets.  As stated, there are a lot of options for an existing small business - would just have to know more to point you in the right direction.

                   

                  Business Money Today

                  • Re: who can i get loan?
                    Moderator Berta Guide

                    Hi Lance,

                     

                    You've gotten lots of great answers and information. Are you able to provide any information? Has any of the  information here helped with determining how or where to go to get a loan?

                     

                    Please keep us updated.

                     

                    ~Berta

                    • Re: who can i get loan?
                      Robin Williams Scout

                      If your business meets the maximum business size standards required, then you can try approaching the SBA. The SBA has helped thousands of Americans form small businesses. SBA offices are in every state and assist you with planning, financing, training and advocacy. In addition, the SBA works with thousands of lending, educational and training institutions nationwide.


                      Good luck!!