Posts Tagged ‘Business Loans’
Getting Small Business Loans with No Collateral in this Recession
The global financial crisis has prefabricated it quite difficult for companies, especially small businesses, to get business loans. Ironically, it is also in this situation that smaller companies often need additional capital infusion to boost income. You might need to get small business loans to acquire a superior business location, construct a new building, renovate your premises, pay for new equipment, fixtures or furniture or increase inventory and working capital.
Most Small Business Loans Require Collateral
To get business loans, even small business loans, is a major challenge.
First you need to refer which among the many types of small business loans you need. Small business loans ranging from $5,000. 00 to $35,000. 00 are called micro loans. For larger needs, such as for the acquisition of land, buildings and other major fixed assets, development financing is what you should find. There are also import export loans as well as franchise financing. Do your research to find out if you are eligible for small business loans guaranteed by the U. S. Small Business Administration or SBA.
Any of these small business loans will require extensive preparations and paperwork. As a small business owner, you will need to establish your credit worthiness through a individualized credit history report. Lenders will also require a business plan which includes your credentials as the business owner, your company financial statements, business assets and an analysis of your market. All of these should be packaged in a professional loan proposal which presents how the loaned amount will be used to strengthen the business and how you intend to repay the loan. Most of all, you need to present your loan collateral – the assets you will place up to secure the loan.