How to get a loan for small business
Video: How to get Small Business Loans in 2020? 2024, July
Quite a few entrepreneurs need bank lending. In the field of small business, obtaining a loan is not easy - many banks consider it risky to give loans to small companies, especially if they do not exist in the market for long. However, if you competently approach the choice of the bank and provide all the necessary documents for obtaining a loan, then a positive result is very likely.
Instruction manual
1
Not all beginner entrepreneurs manage to organize their business using only their own investments or funds of relatives and friends. Many resort to bank loans. Small business loans are also needed at the development stage - for further successful business growth.
2
First of all, you need to calculate what approximately amount you will need to develop your business, and start looking for banks that can provide such an amount to small businesses. All more or less suitable banks should seek advice. As a rule, some banks will “disappear” for you right away, and you can submit documents to the rest.
3
To get a loan for a small business, you need to observe a number of necessary requirements and provide a specific set of documents. To obtain a loan you must:
1. to prove the implementation of entrepreneurial activity within 6 months or more from the date of registration (that is, it is practically impossible to obtain a loan for "start").
2. have a positive credit history of the borrower or the absence of any credit history.
3. have confirmation of a stable income for the company.
4. have collateral.
5. have guarantors (not required in all cases, but quite often).
6. Provide a business plan.
7. disclose financial and tax reporting.
Banks may have other requirements.
4
Consideration of an application for a loan to a small business usually takes place from 3 days to two weeks. The bank may notify you of a positive decision earlier. If the bank makes a positive decision, it remains only to discuss the interest rate and the loan repayment term, as well as conclude an agreement.
