Getting a Business Loan

Sooner or later most  businesses need to get a business loan, whether to get the operating capital for business startup or to finance an expansion. But whether you're approaching a bank or a friend for a small business loan, the lender will have the same expectations.

You can greatly increase your chances of successfully securing a business loan by being prepared to meet those expectations.

Put yourself on the other side of the desk for a moment. If someone asked you for a  business loan, you'd want to know exactly why he or she wanted the money and what the chances were that he or she would repay the loan in full and on time.

So the key to getting a business loan is preparation. First, gather together the documents that will help persuade the lender that a business loan is necessary and that you are a good risk. You will need:

A business plan - The business plan show the lender not only why you want a business loan but what you plan to do with the money.

Cash flow projections - What's the first question any lender has? Will you be able to repay the loan. Your business's cash flow projections give lenders concrete financial data that they can use to assess this risk.