Getting a loan for business startup seems almost impossible, but it can be done, if you are persistent and you keep working to improve your business plan. The process of getting business startup money involves:
- Getting your personal financial papers and your credit information in order
- Preparing a business plan
- Going to banks in search of loans
- Finding other financing sources for additional funding needs
- And putting it all together to finance your business startup.
The sooner you start, the faster you will get that money!
2. Prepare Your Startup Business Plan
You will need to present a comprehensive business plan that includes:
- A detailed market and competitive analysis
- Specific marketing activities and costs
- Three year projected income statements and balance sheets
Without this document, you will not be able to get a startup loan.
3. Get Your Personal Financial Papers in Order
Personal financial documents you need to prepare and take to the bank:
1. Your
4. Why Banks Say No to Startup Loans
Being prepared means understanding what a bank is likely to say when you announce that you want a loan for business startup.
5. What to Do When the Banks Say No - Other Sources of Startup Financing
When you have exhausted the possibilities of startup loans from banks, consider these other sources:
- Borrow from family or friends, or get them to co-sign a loan
- Buy or lease equipment directly from the vendor
- Establish trade credit directly from suppliers
- Get a business credit card
- Consider alternative financing sources, like microlenders and peer-to-peer lending.
Read more about these sources of business startup money, and get going on your search for financing.
