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    19 Replies Latest reply on Nov 7, 2014 12:45 PM by eugene burnell

    Loan For Small Business ....

    joya Adventurer

      How should I find Business Loan Online?

        • Re: Loan For Small Business ....
          Guide

          Hi Joya,

           

          Thank you for opening this discussion topic again. As you know from our previous discussions, it would be most helpful to include as much detail about your needs as possible so that we maybe able to guide you in a more suitable fashion.

           

          Google is a very powerful tool to use. Just by searching those specific words (on line loans), pages of information will be instantly granted. I would only consider reputable institutions (from well known banks to the SBA). There are also specific loans available on line depending on what it is that you need the funds for and how much you would like to borrow.

           

          Hope this was helpful.

           

          Melinda

            • Re: Loan For Small Business ....
              deltacredit2013 Adventurer

              The short end to your answer is, "you shouldn't".  Rely on your business partners to help you with this.  What business partner you ask?  Try your banker.  Chances are the person that opened your account is not the one that will help you get the loan.  Inside your bank there should be someone who is designated as the small business specialist.  That is the person you should go to.  This person should be able to look at your P&L, credit score, and other qualifiers like time in business and tell you what you need to do to qualify for a loan.  Hopefully that same person has had enough experience in the field to have a relationship with SBA to know what their requirements are to back the loan if you fall short in particular categories (i.e., time in business), but score high enough in the other categories (i.e., FICO score) to still get something.

               

              HOWEVER, the first person you should try to get past is yourself.  You should NEVER get a loan if you NEED it.  Take the time to borrow at the pace your business is growing.  If you get a loan too early you will be faced with the incident that you won't qualify when that "big break" comes along (see our previous posts).

               

              Good Luck!

               

              - Delta Credit Restoration

                • Re: Loan For Small Business ....
                  Ranger

                  Very interesting point of view, Michael. You're right that your in-real-life partners should be your first point of contact about finances for a business.  To say not to get a loan if you need it is most curious but sound financial advice, in reality. 

                  Thanks so much for your input!  We are looking forward to your contributions to the community.

                   

                  Joleen


                • Re: Loan For Small Business ....
                  lance martin Scout

                  I think, this information is quite informatics for understanding.

                • Re: Loan For Small Business ....
                  phanio Pioneer

                  Well, how much are you seeking and what will the funds be used for? Those are the questions that you have to answer. Small business lending resources are based on those two issues - some lenders only loan a small amount and some only lend for equipment purchases or working capital. Just asking how to finance an online business is like asking how big the universe really is.

                   

                  Online businesses are relatively cheap to start - thus most new online businesses are bootstrapped from personal resources like savings or credit cards. Then, when the business started to generate revenue - other options open up for growth financing - but they depend on how and how much that business earns in revenue.

                   

                  For almost all new start up business - online or not - the potential business owner has to find was to bootstrap - using personal resources to either finance the business or use them to get a personal loan to finance the business.

                  • Re: Loan For Small Business ....
                    Terry Painter Newbie

                    I want to join the chorus of voices saying how critical it is to choose your commercial loan provider very carefully.

                     

                    We've written several articles on the topic.

                     

                    Here's the first in a three-part series, "Choosing a Commercial Loan Provider." Choosing a Commercial Loan Provider.

                     

                    And the first in another three-part series, "The Importance of Testimonial in Choosing a Lender." The Importance of Testimonials in Choosing a Lender, Part 1.

                     

                    Good luck!

                    • Re: Loan For Small Business ....
                      kimmy burguess Adventurer

                      Hi Joya

                      I had read somewhere that small business owners looking for a loan should try hopping online. A handful of companies include BoeFly and Biz2Credit are creating online marketplaces to connect small business owners with lenders. While the current economic climate has made it tough for small business owners to get a loan, there are banks with money to lend but simply can't find the right company."We heard a lot about how small businesses can't get a loan or lender's can,t find credit worthy borrowers" said Bob Tannenhauser, founder and President of New York based BoeFly, which was in March. According to him there was a great need to bridge the gap and get qualified borrowers connected with those lenders.

                      • Re: Loan For Small Business ....
                        daniallouis Newbie

                        I appreciate the help you are providing for many people like me on managing businesses in this tough economy. I would love to learn more from your blog.

                        • Re: Loan For Small Business ....
                          Tran Nguyen Tracker

                          Hello All:

                           

                          Getting a business loan is sometime a tricky business in itself.

                           

                          Some banks require a minimum annual revenue, while others don't really care too much. But to start at the beginning of a business loan.

                           

                          1. Know what type of loan you are getting:

                          Many banks & lenders have varying amounts for different type of loans. A perfect example is an SBA Loan versus a Commercial Loan. Both are loans for businesses, but have varying requirements. On the same token, a "start-up loan" is a subcategory of "Commercial Loans" but is far more lenient to help a business start up.

                           

                          2. Get an Accountant:

                          You should always consider getting an accountant prior to getting a loan -- even if its just for advisory sake. An accountant will not only understand your loan, but also know how much you need, how long, and if it is a good idea or not. Many businesses flounder because they skip the accountant and go straight for the loan -- the risk then is asking for too much or too little.

                           

                          Also, an accountant will be able to add prestige and backing to your loan. It never hurts to have that when approaching a bank.

                           

                          3. Shop Around:

                          Getting a loan is like getting a new pet -- just because you fall in love with one, doesn't mean it's as nice and furry on the inside. Never let desperation or impulsive action determine which loan you want. Often time, if you approach other banks with a loan that was offered to you at a competitive bank, they will match or lower their criteria in order to get you to sign with them.

                           

                          4. Have a Business Plan & a Presentation Ready:

                          Banks no longer hand out money left and right. They want you to have something that they can look at it and decide if it's worth investing in or not. So be prepare to talk (at length) about your company, your business, the use of the loan, and have some projection ready -- again, an accountant can help with this.

                           

                          That is about it for a loan. I do have to take this time to say that I disagree about relying on your business partner for funding. The issue with that is, it put a heavy toll on your partnership and could also mean you lose a controlling interest in your company.

                           

                          As for the bog; here is a link to my blog. It addresses accounting questions that small businesses run into. I also take suggestions and questions from the community.

                           

                          I hope this helps!

                           

                          Tran Nguyen

                          Accountant

                          Accounting for Your Success

                          • Re: Loan For Small Business ....
                            pauljoachim Scout

                            Small business loans are still really hard to get.   You've got both the bank execs and small biz advocate groups complaining the government regulations are too tough and they are pointing fingers.   Meanwhile small business is being left without a lot of options.    Some of the options you have are traditional small business bank loans, friends and family, investors, personal credit cards and factoring companies as well.  None of those paths are going to be easy!!!

                            • Re: Loan For Small Business ....
                              Creditbuilder Scout

                              Having worked at Dun and Bradstreet I can tell you, most of the mistakes business owners make is being reactive to the changes that occur in the market as opposed to being proactive for any possible changes that can affect funding.  For people who need help to get cashflow NOW should consider fedloanprograms.org, but otherwise you should consider a long-term strategy.  Such as.  Is you website on the 1st page of organic search engines in Google.  Think about it.  When was the last time you looked at the yellow pages for a local business versus Googling them?  When was the last time you Googled for a business you bothered checking the 2nd or 3rd pages instead of picking one of the choices from the 1st page of Google?

                               

                              Likewise if you are not on the first page of Google, instead of finding you, customers find your competitors -- if you don't think that makes you a greater credit risk you need to reevaluate what era you are living in.  I had to, lol.

                              • Re: Loan For Small Business ....
                                kimmy burguess Adventurer

                                For established businesses with good credit history, obtaining a loan is not that difficult. But if your business is new or if you have run into financial difficulties in the past, it may be a bit difficult to get one of the loans for your business. While applying for a small business loan,  first research the type of loan you want to make sure you qualify for it. 

                                • Re: Loan For Small Business ....
                                  Harry kyin Adventurer

                                  In case of a start-up it is better boot strap the business in the initial stages. Also, do not borrow too much, too soon. Assess your business needs. Work out your requirements pragmatically. Try to work on supplier financing. It helps to strengthen your relationship and give you the much needed cash. Work with designated banks which cater to the need of small businesses.