Four Tips To Secure Yourself A Business Loan
Friends and Family
Which one of these options is best for you? Read on to learn more about each one and how they can help you get your business doors open and stay afloat.
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2.Yourself, Family and Friends
Related Articles articles8 The majority of entrepreneurs know that getting cash from the people they know is easier and quicker than trying to get it from an investor. Also, many investors demand that you have some kind …show more content…
After all, banks do want to loan the money to start-up companies. But, in order to secure a loan, you need to have your ducks lined up and everything in order before you walk into the loan department of your bank and ask for the money. So, what should you be doing to ensure you get a business loan?
4 Tips To Secure Yourself A Business Loan
1.Have All Business Documentation On Hand
It’s imperative that you have a portfolio that dates back three years if you want an SBA or bank loan. Keep in mind that lenders will check your credit history so keep a close eye on the credit report and take care of any “red flag” entries.
Many banks will demand that you personally guarantee the loan. After all, when you have to put a personal stake into it, they know you’re more likely to pay it back. If you have enough collateral to cover the principal of the loan, you may not have to do this.
2. Let Them Know About Your Company and Its History
Many mistakes business owners make when trying to get a business loan is not telling the bank why they need it in the first place. They don’t let the bank know about the company’s history and what its future looks like. It’s imperative that business owners make a pitch to loan officers to secure that business