How to Apply for and Obtain a Small Business Loan

Here are a few tips on how to apply for a start up loan for a small business.

Difficulty:

Moderate

Instructions

1. First you need to decide what type of business loan you need,the loan officer at your bank will help you with this.It could be a line of credit or both. You need to determine how much money you need and what it is for.A small business loan can be used to buy equipment ,cars ,payroll,or inventory to name a few.Most banks require a 20% down payment to get the business loan application started.You will need your last 3 years
   of your federal tax returns. A personal financial statement which the bank will provide and help you fill out.

2. For all small business loans you must submit a business plan which you can obtain from the web and print it out and fill it in. The business plan must include 3 years of income and expense projections. The first year must be moth to month the next 2 years can be cumulative.The bank loan officer will help you fill out the forms and guide you along the way.

3. Help is also available from the small business administration program called S.C.O.R.E which can be very useful. This promgram from the SBA is made up of retired business owners with experience in your business model.The minimum amount for a small business loan is $10,000.00.If you need help ask your loan officer and make sure to contact the small business administration they can be a great help in getting a business loan.