|
Author:
Bev Dodd
Web Site: http://www.family-refinance-consolidation-loans.com
Small
loan: Increase your chances
Are
you looking for a small loan? Loans
financed in participation with the Small
Business Administration are available to
start a new business, to purchase or
expand an existing business, to acquire
real estate and equipment, and more. For
advice on how to apply for a small loan to
start your business, read on. We'll
discuss this more below.
Keep
in mind that to stay in business banks
need to make loans. Do not be afraid to
ask for a small loan. That is what the
loan officer wants you to do. To increase
your chances of getting a loan, look for a
bank that is familiar with your industry
and who has done business with companies
like yours. Seek out banks that are active
in small business financing. Some banks
lend on a conventional basis (lending
money without government support), while
some banks participate in government
programs (in the form of government
participations involving direct government
funds or loan guarantees). However, be
aware that banks often demand stiff
collateral requirements for start-ups.
The
SBA Express was launched last fall in yet
another effort to lessen the paperwork
hassles attached to applying for a Small
Business Administration-backed loan.
Bank-qualified business owners can borrow
up to $150,000 without going through the
standard SBA application process and are
guaranteed a small loan decision within 36
hours. Since the loans are guaranteed by
the government agency only at 50% of their
face value, many of the 500 or so eligible
"preferred" lenders (which
include commercial banks and other
financing institutions with good track
records on their other SBA loans) have yet
to sign on. To track down active lenders
in your area, contact your SBA district
office, or visit the agency's website.
The
financier's opinion of your capability and
trustworthiness will be a major factor in
the bank's loan decision. So dress
conservatively. Appear relaxed and
confident about your small loan business
prospects. If you are seeking funding for
a relatively new business, include a
resume of your previous accomplishments in
your presentation package.
|
