Three
steps in commercial landing
Here
are some guidelines to help you:
1.
Preliminary Steps: Assemble the following (your accountant
can assist you):
•
A business plan (most important tool for obtaining a loan)
•
Your business' cash flow projections
•
3 years company tax returns (if applicable)
•
A personal financial statement
2.
Research
•
Talk to your own financial institution first. They are familiar
with you and may be able to make some recommendations. Ask
them what kinds of businesses they give loans to.
•
Talk to other women business owners in your area or in your
industry who may give you tips, or leads on lending institutions
with which they were successful in getting a loan.
•
Check with community business associations like the Chamber
of Commerce, a home business association or a local chapter
of the National Association of Women Business Owners to see
what micro-lenders exist in your town. They may also be able
to inform you of the existence of "angel" investors:
local businesses that invest in other local businesses.
•
Ask your state senator or state representative if there are
special state loan programs for women and minority business
owners.
•
Contact your local Small Business Development Centers and/or
Women's Business Centers, which are sponsored by the U. S.
Small Business Administration (SBA), for information about
the availability of SBA LowDoc Loan Programs.
3.
What Lenders Want to See:
Your
contribution -- Your personal pledge of at least 30 percent
of what your business needs in terms of tools, equipment or
money.
Your
expertise -- Experience, knowledge, and/or training in your
industry.
Your
collateral -- Today, there are no unsecured loans. Types and
amount of collateral are determined by individual loan programs.
Your
personal credit history -- If you have a blemished credit
record, try to get it cleared before you start applying for
new credit. Also, note that if you have too many inquiries
listed on your credit record and/or a record of loan turndowns,
it can make lenders cautious.
Your
payback plan -- Consult your accountant.
Also,
your honesty in asking for only the money you need (provide
written cost estimates) and discussing anything that may jeopardize
your loan. Your forthrightness will be appreciated.
Preparation
for applying for a bank loan takes some effort. The pay-off
will be worth it, though, if it results in your getting the
money you need -- and, possibly, developing a relationship
with a lender who can offer you valuable advice on other financial
services beneficial to your business.
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