Have you been bitten by the entrepreneurial bug? Perhaps you hope to be the next Mark Zuckerberg?
The first step in starting the small business you’ve always hoped for is securing financing. It’s important to know that business loans are not the same as personal loans. Their structures are totally different, and the two have different application process. With this in mind, read on for some tips on securing a business loan for your company.
1. Have a Brilliant Idea
This one may seem obvious, but it’s more difficult to enter an existing market than to create one all on your own. With more competition, your business will have less chance of survival, and business bankers know this. The more unique and exciting your business idea seems, the more likely your loan request will be granted.
2. Focus on Your Business Plan
This is one of the most important documents you will write in your career as an entrepreneur. Unlike personal loans, which rely almost solely on your income and credit history, business loans require a written description of your business’s purpose, cost estimate, financial projections—essentially, a plan for success. Make sure the plan is clear, concise, and free of errors. This will be a large determining factor in how well your application performs at the bank. Many companies, including Biz2Credit, offer help in writing business plans. It’s a small investment of money for a tool that can help secure a significant amount of capital.
3. Separate Business and Personal Money
Separate your personal savings from your business. The harsh reality is that many small businesses fail within their first year of operation, and if yours does, it will affect not only your entrepreneurial life but also your personal life. Keep your personal savings away from your business.
4. Try, Try Again
If your loan application is rejected the first time around, you can try again later, or at a different bank. If and when a bank does reject your application, find out why; a rejection can be an opportunity for improvement. Don’t waste time going bank-to-bank. A platform like Biz2Credit.com can provide multiple funding options from just one online application.
Biz2Credit is here to help you figure out the best path to take for your small business. If you have any questions about loan application, a loan specialist can help. Call 877-861-2210 or visit Biz2Credit.