You have an idea, desire, and plan. And you don’t have enough working money, do you? The process of obtaining a loan to a small business can be easy or with complications – it all depends on how you prepared. Follow this formula to get a loan for a business, and you can move on to more important things.

Preparation: The key to success in obtaining a loan for small businesses.

If you want to reasonably prove that “you or your business is worth the money”, you need to prepare a series of documents. The first is your personal credit history, which is relevant to your small business loan, this is especially necessary if your business has a short life history. Banks will consider that you manage your business in the same manner as you manage your personal finances. Bring your credit history and they will approach you with more loyalty.

The second is financial reporting for your business. She is needed in order to show the financial condition of your company. The lender wants to know what value your business has and what your money turnover is. If you are serious about lending to your business, then you are ready for detailed proforma reporting. This will provide information for predicting the price of your business in the future.

Finally, make sure you have an updated business plan. In preparing a detailed business plan, you will use your financial statements and the necessary proformas. The bank will issue loans to small businesses to those who have all of these documents. We strongly recommend that you prepare a business plan in as much detail as clear and clear as possible – including biographies of you and your partners, your experience, your advantages and strategies, and much more.

So, the package of documents is ready, the time has come, go to the banks and “ask for money” – take a loan . Where should I apply for a loan for a small business? Since you have to provide all your personal, business and financial information, in any case, doing this with anyone is not worth it. Better with someone who already owns your financial information.

Start with the banking institutions that serve you. They already probably know your credit history and financial condition, there is a high probability that they can help you with a loan, since you already have a history of working with them. Keep in mind that most of the risks, from the point of view of the bank, lie in the uncertainty of repayment of loan obligations.

If you do not have the opportunity or do not want to contact the banks with which partnerships have already been established, then look for offers from banks and credit organizations, for example, in business newspapers. These institutions are actively looking for customers, and such a process as getting money on credit from them will be simplified.

Another option is to contact credit unions. Usually these structures are compact, which will give you the opportunity to directly communicate with higher decision-makers when discussing your issues.

Larger banks have higher requirements and complex procedures associated with lending to small businesses. Even if the manager with whom you communicate believes in you, he or she may not be able to help.

What if you can’t get a small business loan?

If you are having difficulty obtaining a small business loan permit, you may have to try some alternative sources. Do not worry, this is often the case for both small and large enterprises.

We wish you good luck in obtaining a loan for the development of your business.