If you are a small business owner, you may need help securing a small business loan. Here are 3 easy steps.
You need to prepare the crucial documentation. It doesn't matter if it is for a small business loan from the SBA or through a bank, it has to be perfectly prepared and professionally offered to get the loan.
Do your homework! Research every small business loan condition you can find. You have to cover your bases when you meet with banks and have all of the necessary documentation in order, to make the process simpler and to help ensure you receive the loan.
On the SBA government website there are 73 forms, items and requests for information needed for a small business loan. The SBA loan process is highly difficult and the information financial institutions want can be melded to make the procedure easier.
Making it simpler: a business plan can be customized to include everything needed for the loan. Make a list of the items and check them off as you add them to the plan. If you have a consultant, they need to be able to prepare the necessary papers. These should include personal financial statements, business financial statements or a detailed Performa, 5 year financial projections, ownership and relationships, business overview/history, resumes and bios.
With a detailed plan you will have a document that exceeds financial institution's requirements. Your financial capability, personal and company track record, strategies, advantages and risks are all exposed and "on the table" - but the loan officer will welcome your organization skills.
When the business plan is done, make a list of all the banks to meet with for a loan. For small businesses, these are the ones close by. You may already have a relationship with the bank. You will be telling them all of your financial information, so go with one that you have worked with and trust. If they're already familiar with your company history and profile they will be more likely to give you that loan.