Is Getting a Business Loan Difficult for Newbie Entrepreneurs?
Getting a business loan from a bank is very easy. You just need to know the qualifications, requirements and procedures. Every bank has this opportunity to be given to all business owners. Whether you are just starting out or you want to expand your business, banks can help you raise your business capital.
Successful entrepreneurs and big boys in the business world expanded their business through loans and grants. If you want to succeed in entrepreneurship and investing, you need to find out how to use leverage. And business loans is one of the leverages used by many successful business owners. Rich people and successful entrepreneurs and investors use other people’s money to make money. So, do you want to use leverage, too?
Things Needed
- Collateral
- Business Documents
- Valid IDs
If you have a car or a real estate property like lot title and proof of investments like stock shares, you can show it as your business loan collateral. Some useful documents you need to prepare can be read at the last section of this article.
Maybe you asked, how long does it take to get a small business loan? You have to wait five to seven days. But not later than one week. Sometimes the bank will not approve your loan depending on how do you prepare the necessary requirements.
Business Loan Requirements
To get approved easily when getting a business loan, here I found a great checklist from US Small Business Administration, here are they;
- Personal Background
- Resumes
- Business Plan
- Personal Credit Report
- Business Credit Report
- Income Tax Returns
- Financial Statements
- Bank Statements
- Collateral
You also need to prepare legal documents such as business licenses and registrations required for you to conduct business, articles of incorporation, copies of contracts you have with any third parties, franchise agreements if any and commercial leases. 1
Source: 1 https://www.sba.gov/content/business-loan-checklist
Image Credit: Simon Cunningham on Creative Commons 2.0 via FlickrHow to Get a Business Loan from the Bank?
- Choose which bank you want to apply for a business loan
- Ask the necessary documents
- Prepare the required documents
- Apply for a loan
- Wait for at least one week to get approve
Some newbie entrepreneurs think it is hard to get a business loan. It’s not, as long as you have the necessary documents presented to the bank. The bank will review your business locations, your revenue and then they will tell you if you are qualify for a business loan or not.
Do you know that banks are happy when people are getting loans from them? Especially when they know that the business has a potential to grow. I remember a young entrepreneur in the movie, “The Top Secret”, apply for a loan for the first time, the bank rejected the application. But, the young entrepreneur insist to get a loan because he feel his business ideas will give him and the bank a good return.
What about you? Is this your first time to get a small business loan from the bank? If you have experiences, share it to the comment box on how did you get a business loan easily. Thanks!