How to Obtain a Small Business Loan With Upfront Cash
Loans are often difficult to obtain for many business owners. Although having upfront cash can help, many lenders want more assurance that you will repay a small business loan. The Small Business Administration, or SBA, guarantees small business loans if you can remit 10 to 25 percent of the loan amount as a down payment to the lender. If you have SBA as a guarantor on your loan, lenders are more likely to work with you.
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Instructions
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Compile your business' financial information. This includes up to three years of profit and loss statements, balance sheets, tax returns, future projections, business licenses, articles of incorporation or partnership agreements, and your business profile. The profile should describe your business activities, how long you have been in business, the number of employees you have and annual revenue for the past three years. Some lenders may require additional paperwork.
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Create a resume and business plan if you need the loan to start a new business. The business plan must include the type of business you want to start, an analysis of the market for your business and possible competitors, an outline of how you will organize the company, including the number employees and board members, and an estimate of the first year's financial outlook.
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Find a lender who participates in a SBA loan program by looking on the SBA website or by contacting your state's SBA office. Contact lenders to discuss the application process and specific documentation requirements. Chose a lender that has experience with loans in your industry to ensure the lender makes a fully informed decision based on your line of work.
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Download the SBA business loan application, personal financial statement form and the collateral form from the SBA website. Complete the loan application with information about your business and yourself. Include income, asset and debt information as applicable. On the personal financial statement, tell the lender about your personal financial history including past employment, previous business experience, personal bankruptcies and debts, such as students loans and mortgages. Put how much upfront cash you have on the collateral form.
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Give the completed SBA forms and your financial documents to the lender. It will verify your information and, if you qualify, extend a loan to you. The process can take from 36 hours to four weeks, depending on the lender, the SBA loan program you qualify under and the complexities of your company's finances.
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Complete the application process by giving the lender the collateral funds. Use a check, money order, electronic bank transfer or cash to make the payment.
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