Business Bank Loan

By: EconomyWatch Content   Date: 23 December 2009

About The Author

EconomyWatch Content

Follow The Money

EconomyWatch, Content Team

 

  • Dot Div
  •      

Getting a bank to fund your small business requires time and effort, and lots of paperwork. Banks have a number of rules that you need to know before approaching them for a loan. In a nutshell, getting a business bank loan requires you to follow these important guidelines: 

·        Demonstrate clearly the purpose of the loan and the intent of your business. That means you need an excellent business plan showing how the loan would be spent and what the expected returns would be. Keep your cash flow projections and ROI realistic.

 

·        The bank will see what kind of experience you have in your business sector¸ your management team¸ and investments in training and development of employees. Show the bank your confidence and ability to pay back the loan.

 

·        Minimize the risks by pledging a security of some sort. New businesses without assets may find this proposition tough. However, some banks may accept the items you are buying with the loan as security. Others will ask for personal security such as your home. Another way to reduce risk is by putting in your equity into the business.

 

·        Look out for banks that are promoting business banking, or have some special offers for entrepreneurs. Shop around and always read the fine print.

 

·        Also show the banks that you have removed risk from your business by taking adequate insurance to cover anything that could go wrong.

Bank Business Loan: Small Business Loans for Women

 

Following are some sources where a women entrepreneur can receive funding for her small business:

 

·        Small Business Administration (Office of Women's Business Ownership): The OWBO oversees the network of all Women’s Business Centers (WBC) throughout the US.

 

·        The Women’s Funding Network: The WFNET promotes and develops funds that strengthen alliances among women and institutions.

 

·        NBC Diversity Program: NBC has its own supplier diversity portal to inform Minority-owned and Woman-owned Business Enterprises (MWBEs) providing high quality services.

 

·        American Association of University Women: This foundation has a global scope and funds graduate women, scholars, teachers and other professionals.

 

·        Financial Women International: It provides information on professional growth, professional networking, information sharing, funding, and career advancement strategies for women.

           


  • Dot Div
  •      

Most Popular in Business Loans

Related Links
blog comments powered by Disqus