Small Business Laons by NBFC

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WHERE
CAN I GET
BUSINESS
FINANCING
2
FIRST
INDENTIFY
POTENTIAL
LENDERS
Some banks simply dont make loans to small
businesses, largely because they consider these
businesses too risky. As such, your first step to
securing fast small business loans is to identify
lenders who have a reputation for lending to
small businesses. Its easy to find this
information because such banks typically publish
their credit facilities on their websites. Look
into local community banks, online lenders as
well as peer to peer lending sites. Make a list
of about 3 potential lenders, and proceed to
research their requirements for getting a loan.
This is important, because some banks will
require you to open and maintain an account with
them for a certain period of time, and others
have no problem working with new clients.
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KNOW
THE VARIOUS
CREDIT
Working Capital Loans When you need money to
finance your day to day operations, youll need a
working capital loan. These loans are usually
short-term (up to 1 year) and can be secured or
unsecured working capital loans. Small Business
Loans These are loans backed by the Small
Business Administration and made by various
participating banks. SBA loans are the most
attractive to business owners because they have
low-interest rates. There are, however, several
requirements a business must meet in order to
qualify. Other common small business loans
include small business term loans and small
business lines of credit. To enhance your chances
of getting fast small business loans, it helps to
understand these products, and know the ones
offered by your potential lender. This will help
you apply for the most appropriate loan.
PRODUCTS
AVAILABLE
4
Establish the Amount of Money Your Business
Needs When applying for a small business loan,
you dont have the luxury of waiting for several
days to get the money. You need it fast. This
means you have to ensure you submit an error-free
application. This way, the person reviewing your
application wont have to call you in to clarify
a few issues. One of the things you must get
right is the loan amount. As you prepare to make
the application, identify the exact amount of
money you need. If you request more than you can
justify, a lender can turn you down. If you
borrow less than you need perhaps because you
believe its easier to qualify for a smaller
amount youll be underfinanced. The consequence
is you might find yourself looking for another
loan after a few months.
5
HOW
DO YOU
DEMONSTRATE
To begin with, know your business credit score.
Wait, there is a business credit score, too? Yes.
If you have a business credit card, then you
probably have a score. Get your business credit
report. Lenders may use your personal credit
score, your business credit score, or a
combination of both to determine your risk.
Business scores range from 0 to 100. The closer
you are to 100, the better your score. Other
important financial information you need to have
a good handle on includes Total business
assets Outstanding loans Time in business
Partners/investors in the business
THIS
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• Get Your Financial Statements and other Business
  Records in Order
• Your potential lender will want to prove that
  your financial standing is as you state in the
  application documents. The loan officer will
  carefully evaluate a range of financial records,
  including profit and loss statements, balance
  sheets, accounts receivable, and accounts
  payable. Ensure these records are accurate and
  up-to-date.
• To make it easier for the bank, have the
  financial records audited.
• Beyond the financial statements, ensure the
  following business documents are in order
• Business licenses.
• Certificate of incorporation (if your business is
  incorporated)
• Copies of business insurance policies.
• Any other business documents required by the
  bank, like property title in cases where security
  is necessary.

7
Consider Getting Professional Help Evidently,
there are a lot of details involved in the
lending process. If this is your first time, you
can quickly feel overwhelmed by the process, and
its easy to make errors that will only lengthen
the approval process. When you want quick small
business loans, it helps to get professional
help. There are competent small business
consultants who can help you every step of the
way, from identifying the best lender to filling
out the loan application forms.
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WWW.ZIPLOAN.IN