Overview of Small Business Bank Loans
The key thing to know about small business bank loans is that you are often judged on your personal credit. If your business had a long and successful history, you wouldn’t be reading this. Instead, you’d have lenders beating down your door with loan offers.
Building a Foundation for Business Bank Loans
While we need to work on challenges specific to business bank loans, we should first make sure that you are a viable candidate for a personal loan.
If you haven’t already, you need to build a credit history to give banks an idea of how responsible you are. Also, you need to know what they see when they pull your credit for a business bank loan. Take advantage of the U.S. government’s free credit report program – and continually monitor your credit going forward.
Over time, you'll want to build credit for your business and stop using personal credit. Business credit is similar to personal credit, but it's important to have both. Keeping things separate can help protect (and build) the value of your business, and your personal assets will be safer as well.
Specifics of Business Bank Loans
Now that we’re sure you’re a good borrower, let’s move forward. Business bank loans come in a variety of flavors, from a variety of sources. Below you’ll find two good articles discussing the topic.
For the more established business, you’ll need to cover the basics discussed on the page about small business bank loans. You’ll learn how to prepare and where to go.
For brand-new businesses, or those who might be more of a risk, you’ll want to know the basics of startup business bank loans. This page will alert you to some alternative funding sources in addition to your typical banks. In particular, you should investigate peer to peer lending options.
The best way to get a business bank loan is to take action. It is surprisingly similar to the best way to get customers for your business. You’ll have the best results with detailed preparation, and by letting people know about you and your business. Once you’ve done that, start pounding the pavement for a good lender.