Business Financing Loan
Learn more on Business Financing Loan.
Many business men knowing that getting a Business Financing Loan is not easy as home loans, it involve many paper works and checking. Further more, a borrower will need to have strong personal credit record to be eligible for a decent business loan from start-up.
Nevertheless, there are still some chances to get the business loan, if you spend more times to study and well prepared. Here are some tips for entrepreneurs to getting the loan :-
1) Bank is an important source of getting business loan, many business men build their good relation with bank from beginning of their business. Because they all knowing that, other than banking activities a good relation between business owner and bankers allow free exchange of knowledge.
2) There are few ways of set up and maintain a good relation with bank. Refer following
2a. Open an account with certain bank that deals with your size and type of small business.
2b. Borrow a short term loan, repay it quickly to establish your business credit.
2c. Manage your account properly, avoid low balances, bounced check and overdraws.
2d. Get them to know your business and know your banker.
2e. Always keep them being inform the latest issues of your business.
3) Include your valuable assets in the application. The assets can be bonds, property, shares, vehicle, machineries and etc.
4) Have a good income record - this will proof to lender that you are a capable earner, risk of lending money to you is not great. Even a new business, this kind of record also play an important role.
5) Be specify and indicate why you need to borrow the amount, for instance, if you borrow $150,000, you must itemize the usage such 15% for premises, 50% for equipment, 20% for inventory and 15% for staffs.
From the list, lender will know that even you have default the payment their still can retrieve the money from inventory and equipment. Which equal to 70% of the loan. From this issue, chances of getting approved will be higher.
For more business loans information, please check out Business Loans Guide instead of Business Financing Loan
or Various Loans Guide for other loans information.
Return to Loan-God Home Page
Return to top of the page