As 2014 begins, aspiring entrepreneurs are challenging themselves to create and abide by their New Year’s Resolutions. This is the chance to start off with a clean slate; go out and do what you’ve always told yourself you were going to do. Perhaps this is the chance to get out there and start that business you’ve always dreamed about.
Don’t let the difficulties of financing your start up prevent you from achieving your dreams. Follow these steps when trying to apply for a start up business loan.
Prepare a Business Plan
Writing a professional looking business plan is the first step toward pursuing your dream. Prepare it with the lender’s viewpoint in mind. Anticipate and answer all of the questions and concerns that a bank would have. Include a succinct description of the business, the amount of money you are asking for, and your business experience and financial history. Outline in as much detail as possible what expenses the loan will cover and what you project future revenues to be. If you need help writing the plan, Biz2Credit offers a business plan writing service that most times results in funding approvals.
Be Prepared to Pledge Personal Assets
When banks grant loans, they typically want to see the borrower pledge some sort of collateral. Bank loan officers expect entrepreneurs to have “some skin in the game.” If you are putting a substantial amount of your own assets into the business, it makes the venture appear more serious and viable. If a bank or non-bank lender sees that you are confident in your plans, your chances of getting the start-up loan will increase.
Credit is more readily available in 2014 than it was in previous years. However, you still have to be smart and do everything you can to increase your chances of getting a start up business loan. If you need help finding the right lender for your startup, a Biz2Credit loan specialist can help.