Where can I get a business loan?

Answer 1

Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000. For example, Wachovia's has various business lines of credits http://www.wachovia.com/small_biz/page/0,,446_612_1399,00.html Their business line of credit can even be approved overnight

It is also best to go to the bank where you have an existing relationship (e.g. where you have your savings or checking account).

Check out the Small Business Administration as well - read their borrowing qualifications at http://www.sba.gov/financing

However, if you're applying for a loan and if it is a big amount, banks and even the SBA may consider other factors aside from your business credit:

- A business plan explaining what the business is

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/microloans.html

Answer 2

SBA has small loans for $25,000 and under for small businesses that do not have established business credit. These have a 10 year payback term if needed. If possible you'll want to avoid loans that require you to be the personal 'guarantor' because it means that you are agreeing to personally be responsible for the loan, as opposed to the business solely having that responsibility.

SBA will also want to know if you have set up your business entity (sole proprietorship, limited liability, corporation).

Getting a business loan is going to depend on the type of business you have. You will have to show that you have an adequate income flow to prove you can pay the loan back.

Answer 3

Loans are really like any Business, if you fit their requirements, have personal credit that is above average, your income(s) are appropriate for the amount you seek, success ! SBA is really alot of red-tape and alot of denials, and your neighborhood Bank may be a good place, but they are " Really Strict " about what they loan. Paying a really high Interest Rate for a starter, is a quick way to failure, unless you are very successful and change loan accounts before your balance gets to low to save any $$$$. Good Luck !!

Answer 4

You might begin with a bank. If you have no luck, try the Small Business Administration.

Answer 5

Try in bank.