Business Finance Loan

By: EconomyWatch Content   Date: 30 December 2009

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A business finance loan is meant for business owners to grow and expand their businesses. Business finance loans in the UK can be obtained from any bank or lending institution. You need a well drafted business plan as the first step to securing such a loan.

Business Finance Loan: How to get the loan 

·        Determine what type of business finance loan is suitable for your business. A short term loan or a bridge loan holds your business together till permanent financing is in place. For long term loans, opt for a financing plan to grow your business or completely restructure it.

 

·        Search for a bank or financial broker that specializes in business finance loans. Learn about their services and get an online quote. Compare several interest rates before making a decision.

 

·        Explore your payment options, such as business overdrafts. You can get a business overdraft on the basis of your existing relationship with your bank. Another option is invoice financing, where the money is readily available to you, but you need to agree to pay off what you owe within 30 days. Decide which one of these options is more suitable for your business.

 

·        Fill out the loan application online or through the bank or lender.

 

·        Deliver the application to the bank or your broker, and wait for the loan to be approved.

Business Finance Loan: Tips

·        Write a business plan and keep it short and easy to understand. This will increase your odds of securing the loan. Provide correct details for all profit and loss, as well as cash flow projections.

 

·        Include financial security in your business plan, such as commercial property or stocks. Show the bankers what you are willing to do to save your business.

 

·        Always be careful about who you are dealing with. If you are not certain about the credentials of a particular bank or broker, move on to the next one.

 

Business Finance Loan: SBA Loans

The steps to secure an SBA loan are:

·        In order to secure an SBA loan, you have to prove to the SBA executives that you have been turned down by at least two different banks.

·        After being rejected by a bank, ask the executives to coordinate with the SBA and make you the loan under the SBA’s loan guarantee plan.

·        Fill out the required SBA loan application forms and provide your personal history statement and monthly cash flow projections. Make sure your paperwork is complete and in order.

·        The SBA then checks your repayment abilities and history of default and bankruptcy.


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