What's the Best Way to Get a Business Loan Today?



Yedda – People. Sharing. Knowledge.Like to open another business and hire people to do work. My concept works.
Getting a business loan from a bank these days takes preparation, patience and at least 20% of the cost to purchase the business in your own cash.  The preparation part should include a well developed and researched business and marketing plan...plus financial projections.

If you don't know how to do this (or don't want to) find a competent professional to help you.  Accountants, consultants, and business brokers may provide the resources you need.

You will need to "paint a picture" for the banker regarding the business you'd like to open or purchase.  Additionally, you'll need to "sell yourself". Prepare a resume with your past relevant experience (relating to business ownership, managment, leadership).

Don't go in and ask the banker "How much can I get?"  Figure this out before you go.  Nothing says 'greenhorn' like this question.  You want to build the banker's confidence in you.  So you absolutely must do your homework before talking with any banker.

And when you do your research be sure to separate your emotions from what you want to do versus what the market will support.  Just because you've always wanted to open a sushi restaurant (for example), it doesn't mean your town will support another one.  Look to see what people WANT to buy and then find a way to fill that want.

And remember people buy what they want....not necessarily what they need.

So once your plan is done, you have your 20% cash down, then go shopping for a banker.  I suggest that you look at the Small Business Administration website (www.sba.gov) to find a list of the Preferred Lenders for SBA loans in your area.  These banks tend to have the best qualified bankers to help business owners get started.

Good luck to you!

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