Requirements for Obtaining a Business Loan

[Mika]

Despite the fact that a lot of people do not like to get a loan to start a business and want to start with what ever they have, it is also true that your business cannot become successful if you lack finances. Therefore, sometimes getting a loan becomes necessary. To secure a business loan, you must have a functional business and convince the lender that additional funds will contribute to business growth. Submit a well-prepared business proposal and offer collateral, which should be valuable assets that reassure the lender of fund recovery. Also try to apply for the loan that offers flexible repayment plans.

 

[Suba]

Even though it is not an easy matter as a small business manager to get a loan, if you have analyzed and predicted that additional capital from the loan will be able to develop the business, then you not only submit a proposal but also need supporting evidence such as a balance sheet and income statement and cash flow. So lenders will be more confident that your business will have good prospects if additional funds are added. However, you as a business owner must also determine the type of loan, such as a working capital loan or investment loan. because your business is already running, it is better to choose investment credit, whether with collateral or not.

 

[Jasmine]

It is very difficult to get a loan for your business when it is in conception period. You cannot get a loan for your idea, you can get loan only when you have already executed the idea. However, if you have a brilliant idea and if you can pitch your idea to venture capitalist, angel investor or equity financer, you might easily get funding for your business. However, funding is different from loan. While loan needs to be paid, you will have to give away share in your business to those who invests

 

[saoussen5765]

The challenge for most small business startups is always where they would get the collateral to secure a loan. The other option for them would be to turn to micro-finance banks to secure a loan without collateral but with guarantors. Even with that one, you would be asked to bring a guarantor who is a high-ranking civil servant. It's not easy.

I know of so many people with brilliant ideas for businesses who can't find funding because of a lack of collateral or inability to find guarantors. Getting a loan for a small business is ultimately very difficult and time-consuming.