Entrepreneurs who have great ideas and services to offer can find themselves in a standstill because of funding. Getting a small business loan to get started can be a little tricky. Yet, even in these hard financial times it is possible to get a loan for your business.
There are a few things you might need. Generally the documentation asked for by the lender will be about the same no matter which lender you choose. Even so, contact your lender for the exact documentation you will need to supply.
Common things needed will be:
- What the loan will be needed for, exactly.
- Existing businesses will need history of the business, financial statements for three years, aging of accounts receivable & payable, and a schedule of term debts.
- New businesses will need a projected opening day balance sheet
- Details of your business lease, if applicable.
- The amount of investment in your business by yourself and any other investors as well as financial records of yourself and investors personally. A resume will also be appropriate form all parties involved in the business.
If your lender is unable to give you the loan ask them if you can be considered for a loan under the Small Business Association (SBA) loan guaranty program. This program can guaranty up to 85% of a small business loan. The lender must agree to loaning the money this way.
If they agree to this, your finanacial information and loan application will be forwarded to the SBA District Office for review. This reveiw can take up to 10 days according to the SBA.