Getting a business loan is NOT easy – especially with the tough economic climate.
You just don’t go to a bank to ask for a loan with only your business idea. Banks look at other factors not just your credit score when applying for a business loan. Banks want to see:
– demonstrated ability of the business to generate revenues — businesses that are already operating and have at least 2 years’ worth of financial statements that demonstrate strong profitability. Business ideas are just ideas; not proven to generate profits
– excellent credit history
– your investment in the business: they want to see that you believe in your business enough to put down your own money into the business
If you have the above, then prepare a business plan. – The business plan is NOT the first thing banks want to see. It’s important, but banks will need to see your ability to repay the loan. Sometimes, they won’t even bother to read your business plan if they know you don’t have any money. If you have to have a business plan, you need a good executive summary (as that is what they’re most likely read, if at all) PLUS solid, realistic financial projections/plans