How to get a small business loan

When opening a new enterprise, the new owner first of all thinks about where to get the starting capital. This issue is a particularly big headache for entrepreneurs whose business is considered small.

You will need

• - business plan,

• - a clear and logical rationale for the profitability of the project;

• - surety.

Instruction manual

1

To obtain a loan, you must first create a business plan with which you can prove to the potential lender the importance of your company and your solvency. It should be remembered that lenders most often support small businesses only when there is material support, the role of which is usually played by the entrepreneur’s real estate.

2

First of all, pay attention to those who are near you - friends and acquaintances. It is possible that one of them is able to help you in your endeavor. When using this option, you will receive a lower interest rate than at the bank, and you can always agree on a postponement if you need one. The other side of the matter is a moral duty to a loved one, who in any case needs to return his personal funds.

3

There are specific support centers for the so-called small business on the investor market. They work according to the following scheme: first they get a big loan at a bank, and then they distribute this amount among their customers, and the selection of entrepreneurs is very strict. A very important role when working with such organizations is played by a business plan and evidence of the profitability of your business. The main disadvantage of this scheme is that the interest on the loan may be higher than in the bank.

4

Banks are another option for obtaining a loan to open your own business. Unfortunately, experts call this feature the least attractive. The reason lies not only in the high interest on the loan, but also in the complexity of the procedures that a novice entrepreneur needs to go through. Of course, you can get a loan here, but most often it is issued only to those businessmen whose business has already taken shape and has certain working capital, which is enough to repay the loan.

5

To obtain a loan, it is not necessary to pledge your own property. To do this, you need to enlist the support of a large company with a good reputation, which in case of difficulties will be able to pay off the debt.