Below is an article that was posted last week in the Today's Tip section of Bloomberg Businessweek. It gives great suggestions for obtaining an SBA loan but these tips can be applied to obtaining any type of financing!
1. Know the requirements. You’ll need to provide personal and business tax returns for the past three years; an executive summary of your business; a personal financial statement including assets, liabilities, and details of personal income; and copies of your insurance policies.
2. Document debt. You’ll also have to provide documentation of current and outstanding business and personal debt.
3. Improve your credit score. All owners with at least a 20 percent equity stake in the business will need to demonstrate a strong personal credit history. These high-stakes owners also will have to be ready to guarantee the loan personally.
4. Get organized. In our experience, many small business owners aren’t prepared and don’t have all the necessary information and documents available. Making sure your application is complete will expedite the loan process.
5. Explore lender options. Both bank and nonbank lenders make SBA loans. You can find a complete list of SBA lenders on the agency’s website.
You should avoid having preconceived ideas about whether your loan will or won’t be approved. Every situation is different. You should keep in mind that each application is evaluated on an individual, case-by-case basis—including yours.
Chief Executive Officer
Newtek Business Services
Click here to read the article.