Comments on: How Do I Loan Money From The Bank To Open A Small Business?

By: j r

j r — Mon, 26 Oct 2009 08:34:19 +0000

business plan
collateral
good credit
co signer

By: queen of answers

queen of answers — Mon, 26 Oct 2009 08:20:59 +0000

A Business Plan

By: Ankhesan Amun

Ankhesan Amun — Mon, 26 Oct 2009 07:53:33 +0000

Banks arent real keen in giving loans now as companies are going “belly up” aka bankrupt all over the world, including the US. This is about the worst time ever to open a business.

By: imisidro

imisidro — Mon, 26 Oct 2009 07:31:00 +0000

You will need excellent credit, a sound business plan, and collateral if not a co-signer or two.
I’m not so sure that a fashion retail operation is the best thing to look at right now. People are thinking essentials – extra clothing isn’t really in that category, and $100,000 is a huge amount of money to sink into something when the economy is so questionable.
Not trying to be a downer, but there’s no way to say it and have it sound good.

By: crazygir

crazygir — Mon, 26 Oct 2009 06:59:22 +0000

Now’s a bad time to get a loan as the credit market remains very very tight (meaning banks are hardly lending except to those with very good qualification criteria)
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… Their business line of credit can even be approved overnight,
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.