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Wednesday, January 08, 2014

How Do I Get A Small Business Loan?

These days, there are plenty of people who are thinking of maybe starting up their own small business - either because of layoffs, because of the difficulty in getting a job in the current job market, or simply because of a dream someone has to work for their own self - but before you can start a small business of your own, you will need a small business loan! When you know what you are doing, it is not difficult to procure a small business loan - but of course, you must first know what you are doing!

The first major step in getting a loan to start your small business is to write a detailed business plan. In this business plan, you need to make sure you project the first three years - at least - of the business you plan to start, and the plan should be as detailed as possible (including your startup expenses and your projected month-by-month profits over that span of time).

Most people naturally assume that a national bank is the best place to go in order to get their small business loan, but it can actually be more difficult these days to get a loan from a national bank because of the recession. A better method these days might be to call up the bank manager of a local bank and set up a meeting - in this way, you can make a connection with someone who is high up in the local business hierarchy and can have a better chance of procuring a loan, all at the same time.

Finally, for the bank, you will have to do your monthly debt-to-income ratio and will have to also give them a record of your last three income tax returns. After this, the bank will do a credit check on you, and then - if all goes well - they will be able to give you that small business loan you need so badly! Once you have this loan, you will be able to start your business, and then the fun parts of running your own business can begin at last!


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