In a trying economic climate, deciding where to get a loan can be tricky for startup business owners. After all, not all funders are equal.
Entrepreneurs considering business formation might benefit from these tips from PowerHomeBiz.com on getting loans approved. To start, the source says it’s important to go into a meeting with bankers with a clear idea of how much money is needed. This demonstrates to lenders that entrepreneurs have carefully considered what they need to spend funds on.
Similarly, the source says it’s important to be prepared with all of the relevant financial paperwork and details. Show lenders cash flow projections, prepare loan paperwork in advance and be ready to answer questions about repayment schedules.
Another tip from PowerHomeBiz.com is to be upfront about the risks involved with a loan. Banks will be very aware of potential losses, and if an entrepreneur ignores risks, it may seem like they are unaware of them.
Finally, entrepreneurs should be confident. The source reminds business owners that banks need to make loans to stay in business, so there is a good chance for success.
In fact, potential success rates may have recently gotten a boost from the government. USA Today reports the Obama administration has proposed legislation to start a $30 billion fund that will get money to startups through small and community bank lenders.