Prepare financial statements for lenders. Draw up a plan that you will follow and show anticipated numbers so that your lender can see your goals and realize that you will make good on paying them back. Documents that should be prepared and given to lenders are cash flow statements, balance statements and income statements. It is also important, as part of the business plan, to write down your goals and present those goals in person to your lenders. Write down what kind of equipment you will need, the marketing strategy you will put in place and then research the best price for each and every item.
Take this research and show it to the lender so that they can see for themselves that you mean business and have a clear idea of what you want to accomplish. It is also important to look carefully at your credit history before applying for a business loan. Most lenders will also want to see your personal bank statements and tax returns for the last year. Be sure to also know your capacity for collateral. Lenders will want to know how much your collateral is worth. In addition, be sure to understand what the loan will cost you. It is most important to know all of the terms and conditions linked to each loan offering before you decide which loan will work in your best interest. Lenders need to know if you will be a good investment.
In addition, before you choose a small business loan, research borrowing options that are available. It may take a lot of time before you find the right loan; however, by adjusting and researching your options, you will find the loan you need. Most importantly, in order to get a small business loan, you must do everything you can to sell yourself and your business. Make a case to your lender as to what makes you stand out from your competitors, why a lender should loan you money, what assets you will use as security against the loan and what assets you will use as security.