Already on ArticleSlash?

Forgot your password? Sign Up

Acquiring a Loan to Help Finance a New Business Venture

 


Visitors: 206

When building a new business, a proprietor will often find themselves in a financial situation that will require taking out a loan from a banking institution. While at the beginning of the business launch, it may be possible to create a small business; in order to grow and expand; proper funds must be secured from a loaner. Understanding how to acquire a bank loan and what a bank is looking for when deciding if you are a likely candidate for a loan is fundamental to producing a viable lasting business. This holds true for all businesses, rather they are online, or tangible retail stores.

When applying for a loan the bank is initially going to ask you for an extreme amount of information regarding your business plans, how you intend to use the money you are loaned, how much you are worth, (also referred to as your assets), and the approximate amount of cash flow and profit your business receives currently and what it is projected to achieve after the loan is granted. They will also run a credit check on you to check your repayment history. How you have handled your previous car loan or mortgage payments can greatly influence the bank's decision in granting you a loan.

Think of a child trying to convince their parents they are responsible enough to get a new pet. The child most likely bargains with detailed descriptions of how many chores they do and their grades in school to convince their parents they should be allowed to adopt a pet. When seeking a loan from a bank, you are the child trying to convince the bank you have been responsible in making your previous loan payments, have a decent amount of cash flow coming in, and have a very structured outline for how and where the money will be spent so that you can repay it later.

Banks are not out to turn you down. In fact, they are in the business of providing loans since they make a large capital profit off of interest rates, but in order to get a loan you have to offer them solid information that shows you will not become a liability. There is no use in withholding information because they will find out, and chances are if they have to find your weaknesses out through the backdoor you now have an even bigger strike against you. The best way to approach a bank for a loan is with a child's enthusiasm. Walk in the door with a game plan, a firm business strategy, and an honest portfolio, and hopefully provided your finances are in order, you will walk out with a loan.

For further small business loans information visit http://www.business-trader.com.au - Australian business for sale Classifieds.

(475)

Article Source:


 
Rate this Article: 
 
Poor Credit Unsecured Loan - No Difficulty While Acquiring Funds
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Should Business Loans or Grants Finance Your New Venture?

by: Andrew Morris (December 30, 2007) 
(Finance/Loans)

Business Start Up Loan - Help For a New Venture

by: Michael Brian (September 08, 2008) 
(Finance/Commercial Loans)

Do You Need A Loan To Finance A Small Business?

by: Sean Goss (February 03, 2008) 
(Finance/Loans)

Get Business Finance Through a Small Firms Loan Guarantee

by: Helen Cox (July 22, 2008) 
(Finance/Commercial Loans)

ITV Venture Business - Building AN ITV Venture Business the Easy Way

by: Brian Trotter (August 19, 2008) 
(Home Based Business/Network Marketing)

Finance Your Automobiles With Automobile Loans Finance Company at Current Auto ..

by: Ishir Pro (July 09, 2008) 
(Finance/Auto Loans)

Secured Loan Finance - Finance Your Range Of Expense

by: Johns Tiel (May 04, 2008) 
(Finance/Loans)

Negotiate As A Professional While Acquiring a Home loan

by: Ervin Stansel (June 13, 2011) 
(Finance/Loans)

Advantages of Acquiring a Home Equity Loan

by: W. M. Blake (October 20, 2008) 
(Finance/Home Equity Loans)

Poor Credit Unsecured Loan - No Difficulty While Acquiring Funds

by: Simon Peyton (November 03, 2008) 
(Finance/Unsecured Loans)