Small commercial loan is capital for your business.
Small commercial loan financing is readily available to all businesses nationwide. The problem is that most businesses don’t understand how to get approved for a small commercial loan. Typically this type of business loan will come from a bank. The Small Business Administration has a "MicroLoan" program that gives businesses access to up to $35,000 that can be used for financing. Other loan programs will offer more money.
Preparing your small commercial loan request the right way is extremely important. Before contacting a lender there are 20 basic items that should be in place. Missing just one of these items could get loan request denied. These items include having a business bank account established before going after the loan, making sure your business is listed in the business 411 phone directory, and having a completed business plan. Also know how much money you need before contacting a lender, and know exactly how that money will be spent. They want to make sure that the money they loan you will be used effectively. Our Business Finance Coach lists all of the 20 items in more detail.
Businesses seeking a small commercial loan also need to ensure they have established some sort of business credit. If your business doesn’t have established business credit it is important that you begin working to build your business credit up. Business credit scores work just like your personal credit scores, and are a key measurement to the lender as to your businesses ability to repay the loan. You also don’t want to get involved with having to personally guaranteeing a business loan. This can put you and your family’s assets in a tough situation. Start building your credit by making sure all loans or lines of business credit are pointing your payment history to the Small Business Financial Exchange. Our Business Finance Coach contains more details on establishing business credit scores.
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