Get Business Loan

By: EconomyWatch Content   Date: 30 December 2009

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Whether your business is in the initial planning stages or has been in business for some time, you must always know how to get a business loan. There are some preliminary steps you need to take while approaching a lender or an investor for a business loan.

Get Business Loan: Preparation

Figure out where your business stands. Always remember that an already established business has a better chance of landing a loan than a start up. List out everything you have accomplished so far, such as:

·        Filing of any patent.

·        Creation of an advisory board.

·        A substantial increase in sales.

·        Identifying a new market to launch your products/services.

·        Acquiring of new clients.

·        Acquiring of new companies.

 

In a nutshell, these are the things you have to showcase in order to get the much coveted loan. Also figure out where you want to be and what defines your success quotient. Does your business depend on an increase in sales, affiliation with a large company or winning over Fortune 50 companies? Whatever your strategy is; define it and keep it realistic.

 

Next, figure out how to achieve the business goals you have set. You should also now know what type of business funding strategy you need to deploy. Some strategies are short-term financing, long-term financing, credit-based financing, equity-based financing, and alternative financing.

Get Business Loan: SBA Loans

The Small Business Administration (SBA) is a federally funded agency that assists entrepreneurs in their business loan applications with private commercial lenders. SBA serves as your guarantor in the loan process. Most banks and private lenders participate in SBA's loan program.

Some SBA loan programs are:

·        SBA 7(a) loans

·        SBA 8(a) programs

·        Low Documentation SBA Loans

·        SBA Express

·        SBA 7(m) microloans

·        504 SBA Loans

·        Pollution Control Loan

 

With the assurance the lender or the bank receives from the SBA, it is likely that your loan proposal will be given its due. Seeking assistance from this agency through its loan programs makes it easier for you to obtain a loan and start or enhance your venture.


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