Steps To Obtain A Small Business Loan

Many people become tired of working for someone else. Some have always had a dream to start their own business. Others have finally decided to take action but are not quite sure how to go about financing. Here are the steps to turning your dream into a reality:

Step 1
Before applying for a small business loan, begin by writing a detailed 3 year business plan including the cash flow projections for each month of that 3 year period. Also, an estimated profit and loss statement must be included for each month for the 3 year period. The purpose of the business plan is to show the lender a road map on how the business will be structured, marketed and profitable. C&C Capital Lending specializes in preparing business plans that have a high rate of acceptability.

Step 2
Getting a small business loan from a national bank can be difficult at this time. Banks have been greatly affected by the recession. Don’t be surprised if you get turned down for a loan. C&C Capital Lending is a good place to start. They offer business loans up to $1 million and service entrepreneurs all over the U.S.

Step 3
Calculate your monthly DTI or debt to income ratio. Add up all your monthly expenses and subtract it from your monthly income. This will prove to the bank that you are personally vested in your business venture.

Step 4
The bank will want to review records of your income tax returns for the past three years. Make copies and include it with your business loan application.

Step 5
During the application process, the bank will do a credit check to determine how you manage your money. It’s important that you check your credit history for accuracy & score. You can Click here to get a FREE copy of all your 3 credit history with score or visit www.unsecuredlines.org. If you have bad credit it will make it much more difficult to get a loan. A high FICO score is key to getting a loan. If you have bad credit, C&C Capital Lending offers a credit repair program to get you back on track and closer to your dream.

Step 6
Lenders will ask the experience and background of the potential business owner(s). They want to see how much knowledge and training you have in the industry you plan do business in. It is good to have at least 5 years industry experience.

Step 7
Some lenders may want collateral in order to give you a loan. This is called a secured loan. Some people may put their house as collateral; this is risky and is not recommended. Continue to seek unsecured financing options. C&C Capital Lending offers unsecured lines of credit.

These steps were prepared to help you plan out the action plan. Good luck and keep persevering!