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So you have decided to start a business, congratulations! All you need to do now is find some
cash to get your new business off the ground. If this is your first time business loan
adventure, go through this 10 step guide. Learn what you need to know before you apply for
funding.

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Although business loan applications vary from bank to bank, they all have some basic
information in common. Here are some universal questions:

V| Îhy are you applying for capital?

V| Îho will be managing the business?
V| Îhat will you use the funds for?
V| Îhat assets do you need to purchase?
V| åo you have a list of suppliers?
V| Îhat is your personal background?

Lenders will want to know your previous address and whether you have a criminal record.

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Lenders will want to know a little about you. Îhat is your background, do you have any
special training or degrees, and what experience do you have in the type of business you plan
to open. You may be asked to put this in a separate document or as an attachment to an
application.



 


Yes, you will need a business plan. Keep in mind that the executive summary is what lenders
will view first to decide if they want to continue reading your business plan. You may want to
have this do by a profession.


 
 

Be prepared to have your personal credit examined. It is always a good idea to know what is
on your report so you can answer any questions that may come up.

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ost lenders will want to see 12 months worth of bank statements and you tax returns.

 


  

The lender will want to see business projection in a professional format. Financial statements
will be the only way for the bank to judge how you feel the grow over time. You should have,
cash flow, income, and balance statements and you should know how to use them. åon¶t
forget to add in seasonal adjustments.


 

If you plan on using any collateral, have a general idea of how much it will be appraised for
and list it in a separate document.

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Just like a car loan, if you use any collateral to secure the loan, you will need to provide
insurance for the asset. Call you insurance provider to make sure that the collateral that you
plan to use is insurable.

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Have a list of the legal documentation that you will need to start the business. any banks will
want to make sure that you can get the necessary permits and license.

any aspiring small business owners have no idea of where to start, and what is expected of
them, in order to get funding. You can start with this list and ask your local bank for help when
you feel you need it.

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