What to consider before applying for a small business loan
Before you apply for emergency business loans for your small business, there are certain facts and pieces of information you need to check out first such as assessing your business and your personal cash flow. It is also important to find the longest term available. Find out from your bank what the term of the loan is, what the monthly payment will be and then give a hard look at your cash flow. This should show you if you can afford the payment. Another step to take is to assess your personal credit score. Your personal credit score should be free of any foreclosures, bankruptcies or judgments, at least in the last three years.
Ask for a free copy of your personal credit score and if it needs to be corrected, then do so because your personal credit score will either open the door for a loan or close that door securely. Most importantly, prepare a business plan. A business plan is important, especially if you want to convince a lender to give you a business loan.
Any lender will want to know that you are operating a viable business and that you have the skills, expertise and knowledge to develop your business. Within a business plan you need to include information about your goals, competitors, past and projected money and expenses, how you intend to build your business and a market analysis. Be sure to show in your business plan why you should have the loan, that you are the best person for the job and then write an executive summary.