how do i get a loan to open up my own business? is it hard to do?

Question

i am currently unemployed. in order to get a loan, would i need to get a job or will the government help? i have heard it's easier for women to get these types of loans. thanks for all answers.

Answer 1

Contact your location Small Business Administration Office, they should be able to help you get the federal loan that you need. If all else else fails, go to a local Credit Union, they can at least get you pointed in the right direction.

Answer 2

The last answer I really thought was the best. If you are unemployed, frankly it may be difficult to get a loan, especially if you don't have collateral or owner contribution. If you don't have a lot to put in in cash or equipment, consider a service-based business. They usually require a smaller initial investment, too.

You definitely need a business plan. You should NOT pay a bank loan officer to apply for a loan. This is not customary practice to pay someone to see if they want your business. Also, you can shop attorneys, but don't pay a retainer unless you need one. When you are strapped on cash (which most of my unemployed clients are), these are things you should not pay for.

SO, first, get a business plan. It needs to be comprehensive and include financial projections, marketing plan (including a detailed analysis of your competition), management profile, exit strategy, and the timeline by which you will do certain things. While preparing your plan, which my take a while, contact your bank and ask them about the loan programs they have. You can get a feel for what they are looking for and how much you need to put down. Typically, you need at least 15% with SBA loans, but expect to only qualify for programs that require 20-50% since you are a new business.

Another option is a "microloan". These typically cap out at around $35,000 and you need to be turned down for other loans. The SBA can direct you where to look for these, though they do not directly issue you the funds.

Whatever the loan, you need to show a STRONG ability to repay, winning management, and provide collateral, including personal collateral. Loans are not granted or favored based on gender - that would be discrimination.

If you don't have collateral or anything to put into the business, consider partnering up with someone who does have it or seek loans from individuals, such as family. I would never do that, but it's an option a lot of people explore.

Don't count on grants. They are typically small and for non-profit organizations. Contact your local SBDC (Small Business Development Center) for local loan programs.

Answer 3

First, you have to have a business plan. This involves a plan that explains such details as who is in charge and your business background, is it a corporation or a sole proprietorship, demographics, plan for insurance (get quotes), your plan on how you will survive the first three years while you getting the business going....etc. Are there any other businesses out there like yours, i.e. the competition. Now go to the bank and make an appointment to see a business loan officer. Some banks will charge you by the hour to consult with a loan officer for a business loan. You will need a lawyer on retainer for any legal advice and protection. To make all this easier, you should take a quarter or two of business classes at your local community college. All in all, it is time consuming and frustrating at first, but the hard work and all the cup-a-noodle meals will all be worth it when the business takes off and starts making money in about three years. Good luck to you, and don't give up!

Answer 4

The business of lending is a dense one and should be researched properly. To get started, I suggest contacting the Small Business Administration (SBA) – links below. Entrepreneur also offers a great site dedicated to money & finance – see below.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* How to Get a Small Business Loan: A Banker Shows You Exactly What to Do to Get a Loan (Small Business Series, No 1) by Bryan E. Milling
* The SBA Loan Book: Get A Small Business Loan--even With Poor Credit, Weak Collateral, And No Experience by Charles H. Green
* The Insider's Guide to Small Business Loans by Dan M. Koehler

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 5

a million,you want a ideal business enterprise plan in written 2, a funds which could instruct that when sale,fee, hire, your earnings you may pay the financial business enterprise each and each month 3, you could desire to come again with some down fee or a collateral to the financial business enterprise as an occasion your homestead. 4, you ought to info to the financial business enterprise which you're an authority interior the sphere or studied interior the sphere of this business enterprise or worked a minimum of over a million 365 days.

Answer 6

Go to your local small business administration office. They have loan programs.

Answer 7

Maybe read the book, "Small Time Operator". Many types of businesses can be started really small, then if its working put more money into it, register it, etc.

Answer 8

As long as you have something to prove to pay back ( i think that is caleld lateral), you should have no problem with the bank

Answer 9

I know a guy... just message me...