Comments on: Trying to get a small business line of credit, Not that easy. Any suggestions? http://aspenfinancialgroup.com/trying-to-get-a-small-business-line-of-credit-not-that-easy-any-suggestions.htm Fri, 21 Oct 2011 00:09:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: imisidro http://aspenfinancialgroup.com/trying-to-get-a-small-business-line-of-credit-not-that-easy-any-suggestions.htm/comment-page-1#comment-112 imisidro Mon, 22 Jun 2009 04:46:24 +0000 http://aspenfinancialgroup.com/trying-to-get-a-small-business-line-of-credit-not-that-easy-any-suggestions.htm#comment-112 Even in a good economy, the two steps you outlined are not really prerequisites when getting a loan, more like the basics of complying with regulatory requirements for starting a business. You can apply for a loan even if your business does not have an EIN and will just use your SSN What banks, and even SBA, looks at are: - A business plan explaining what the business is - Your personal credit history - Financials of the business. If this is a new business, how realistic your financial projections are - Your background and experience in the business -- this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you - Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application - Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you - Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail. - Equity investment as they want to see that you are invested in your business as well Even in a good economy, the two steps you outlined are not really prerequisites when getting a loan, more like the basics of complying with regulatory requirements for starting a business. You can apply for a loan even if your business does not have an EIN and will just use your SSN

What banks, and even SBA, looks at are:

- A business plan explaining what the business is

- Your personal credit history

- Financials of the business. If this is a new business, how realistic your financial projections are

- Your background and experience in the business — this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

- Equity investment as they want to see that you are invested in your business as well

]]> By: Kevin C http://aspenfinancialgroup.com/trying-to-get-a-small-business-line-of-credit-not-that-easy-any-suggestions.htm/comment-page-1#comment-113 Kevin C Mon, 22 Jun 2009 04:46:24 +0000 http://aspenfinancialgroup.com/trying-to-get-a-small-business-line-of-credit-not-that-easy-any-suggestions.htm#comment-113 It's really hard right now. You need to write up a professional and detailed business plan and have that ready for when you apply. It's really hard to prove to banks that you have a good idea for a business in this economy. It's really hard right now. You need to write up a professional and detailed business plan and have that ready for when you apply. It's really hard to prove to banks that you have a good idea for a business in this economy.

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