Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources

Small businesses provide the majority of new job creation for our nation and yet pulling together the funding to become a successful, job-generating company can be very challenging. Small business loans are among the most desirable forms of financing a growing firm, but only about 20 percent to 25 percent of small business loan applications are approved on average. If your company is looking to secure some working capital from a traditional lender, here are five ways to put your best foot forward.

1. Know How Much You Need
Lenders will only take you seriously if they can tell you have done the math and that you are not asking for more cash than you really need. Determine your specific business and financial goals for the borrowed funds and be prepared to present exactly how you would use the small business loan to accomplish those goals.

2. Find the Right Lender
While alternative lenders make small business loans, they often charge outrageous rates. Make sure you have targeted the right type of lenders for your needs. Small Business Administration- backed lenders are smart to consider. SBA loans have some of the lowest rates and longest repayment terms and there are many, many SBA-backed lenders you choose from.
Also If your business is quite small, turning to local credit unions or other small lenders may be more apt to accept your loan application than bigger establishments.

3. Designate Your Collateral
Most small business loans will require you to offer collateral to pare down the risk to the lenders. It could be your personal house, the business property or heavy machinery. It could even be business inventory or accounts receivable, but most lenders will want to see that you are willing to put some “skin in the game” before they let you borrow money.

4. Prepare All the Documentation
Small business loans require lots of paperwork and documentation. Find out what will be required and gather everything before you submit your loan application. This will certainly include cash flow statements, tax returns, balance sheets and income statements. You should also have a written business plan ready to go.

5. Try, Try Again
Even with all your preparation, there is a chance your small business loan application will not be approved on the first try. Keep trying, keep tweaking your plan until you obtain the funding your growing business needs.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources