Small Business
If you are a small business owner, at some point or another you will most likely have to get a small business loan, whether it be to finance improvements on your establishment or to gain some extra capital to help you keep afloat. Now, whether you are thinking of getting a bank loan, asking an investor or just calling a friend, you will still have to be prepared to face the same tough questions and expectations. It’s very important to be prepared for when you actually ask for your loan.
Your first plan of action should be to gather all necessary documents that will help you persuade your investor into lending you the amount of money you need. You will need:
- A good business plan
- A sound projection of your cash flow
- Personal financial statement
The business plan will demonstrate that you are well organized, focused and prepared.
The cash flow will let the lender know that you are prepared to, and will be able to in fact pay them back the money.
Your personal statement is to let the lender know your current financial situation. You will have to write your assets, liabilities etc.
You might also need these other documents in order to receive your business loan.
Any business tax returns from previous years – If you have a business that is already established, you will have to bring tax returns from years before. This will let the lender in on how your business is financially doing. They will also be pleased that you are well organized.
A credit report – Any lender will want to see a past credit report, even a family member. Since a credit report shows your past payment history, it will be an indicator as to whether you are responsible with paying back your loans.
Now that you have all the documents you need to get a small business loan in order you can prepare a well thought out and organized presentation.
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