This short video describes the most popular Small Business Administration loan program, the 7(a) loan.
by: Neil Best
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information:
1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.
2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).
3. Details of how you will repay the amount borrowed. For example, Ã¢â‚¬Å“From the increase in profits of reduced running costs of the Whizzbang Go4ItÃ¢â‚¬Â
4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If youÃ¢â‚¬â„¢re not prepared to put up some aspect of security, then why should they?
5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.
9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan
About The Author
This article and other useful info such as sample business plans, sourcing and applying for small business grants, and how to find and approach potential investors can be found at http://www.smallbusinessfinancetips.com/small-business-loans.html
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