How to Get a Small Business Loan

This is an article on how to get a small business loan

Things You'll Need

• An understanding of the following:
• loans
• banks
• small business finance

Instructions

1. Step 1) With unemployment so high and jobs scare, many people are starting their own small businesses. The first step in getting a small business loan is writing a a detailed 3 year BUSINESS PLAN including the cash flow projections for each month of that 3 year period. A business plan is a detailed listing of the projected income as well as expenses of your start up business on a monthly basis.

2. Step 2) Step 2 in getting a small business loan for your start up business is researching the BANKS in your area. Banks were hit very hard by the recession--as we all know--so getting a small business loan from a national bank can be difficult. I recommend going with a local bank. I recommend calling the BANK MANAGER to set up a meeting to discuss your business start up getting a small business loan.

3. Step 3) Step 3 in getting a small business loan is a write-up on your current DEBT-TO-INCOME MONTHLY RATIOs (how much money you bring in a month versus your debt). This will prove to the bank that you are personally solvent in applying for your small business loan.

4. Step 4) Step 4 in applying for a small business loan is a record of your past 3 INCOME TAX RETURNS. They are going to ask you to prove how much you made over the last few year so you might as well have it ready for them in applying for your small business loan.

5. Step 5) The bank will do a CREDIT CHECK on you as part of your application for a small business loan for your start up small business.

6. Step 6) The bank will ask how much KNOWLEDGE, TRAINING, or EXPERIENCE you have in the industry for which you are applying for a small business loan. Obviously, it's prefereable to have atleast 5 years experience in that field of business.

7. Step 7) The final step in applying for your small business loan is deciding what you will put down as COLLATERAL (if any) for the business loan. This is risky--I don't recommend it--but many small business entrepreneurs put down their house as collateral.

8. Step 8) The preceding has been a step-by-step guide on how to get a small business loan. Refer to the tips section for more information. Good luck!

Tips & Warnings

• Many small businesses have such a low overhead that they don't require a small business loan. Here is an ebook for one of them at the following link:

• http://www.lulu.com/content/paperback-book/how-to-start-a-tutoring-business/7033993

• You need to do your homework and research the following:

• small business loans

• bank policies and procedures