How to get loan for small business

Discussion in 'Growing and Managing a Business' started by albert george, Oct 15, 2012.

  1. albert george

    albert george
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    how a business owner can take loan from bank and other sources?what are the conditions for getting loan and limitations also.
     
  2. kimipatel

    kimipatel
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    Well good question. For any business is most important thing is loan. From starting of business bank can not give loan directly. We have to give them some security or we have to give some deposit. That time we need other sources like family or friends or some else. Also it's all depends upon your business requirements?
     
  3. Fergal

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    Every bank will have different terms and conditions, in fact even different loans with the same bank, will have different terms and conidtions. The best approach is to contact banks directly and ask them about their application process and loan terms.

    When granting a loan, the banks primary concern is that they get paid back, so when approaching them you need to be able to give them evidence that you will pay the loan and interest back in full.
     
  4. noreturn

    noreturn
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    I think if you were to go into a bank and explain that you are looking to get a loan for your new business and told them all about what it is and why you are going to grow and all that kind of stuff I think that you maybe able to get that loan. But like Fergal said all banks have different terms and conditions so you may still might not be able to get that loan but it might be worth a shot.
     
  5. masterbizcoach

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    It will be useful if you tell us what state you are located right now. But make sure if you avail a loan, don't avail more than you can't afford. Check about what's the interest rate per month and compare it to your estimated ROI that can cover the monthly payment and interest.
     
  6. albert george

    albert george
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    Thanks people for giving me so much replies.Now i can easily find out that what is suitable for my business.Main thing is loan so i will think about it.Thanks guys for supporting me
     
  7. pawee

    pawee
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    Here are some insights that most bank has on their Loan guidelines:

    Make sure you have a good credit history. Banks need proofs that you can repay the money you'll borrow from them. Many banks even seeks for collateral cause they know some unforeseen situations may come that can impact your ability to fulfill your end of the deal. A co-maker/ co-signer can also help if you can't provide a good credit history, the bank will review both you and your co-signer credit history so you should pick someone who have a good one!
     
  8. Mark T

    Mark T
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  9. mauricecowell

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    Every bank have different policy in terms of loans because they are talking here money that you will lend to them. The bank needs your income every month and they will base their your capacity if you will be able to pay them on time and other resources so that they could check your records.
     
  10. BNB

    BNB
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    Your ability to get a loan for your business will have more to do with your personal credit than anything else.
     
  11. sigma

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    All the bank are different and even some different if you are from different country. If you want to get loan for business, you shall go to the bank and ask, it is the way to get the details. Also, try to go as many bank as you can to get the best offer
     
  12. 2misi.com

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    You need to choose the right bank with low interest rate. Every banks have different rules.
    If you want to loan money from bank, try to make your profile as professional as possible in order to ease the process.
     
  13. TimeRider

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    albert george, It's better for you to visit Bank or Finance LTD for the loan. I can't tell you the exact thing because as Fergal said it's different in each banks. The terms / conditions, policies may differ. So, read the Terms and conditions carefully before taking loan. Insurance is better if you take loan from bank or Finance LTD.

    It can be very beneficial if you can borrow money from your family or friends for you business and Later don't forget to pay them back :) because Interest may not be required.
     
  14. williamjames732

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    I also heard that banks are not provide start up business loans. You can try any other organization for start up business loans.
     
  15. josephinesharla

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    For small or large business establishment we need lots of money, without it we can't start the any business. Once if we established the business that should be running in profitable and successful manner, there are many banks are providing the loans based on their policies. According to that we have to take money from that.
     
  16. Picture

    Picture
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    Unfortunately, you've picked the wrong time, as banks are a lot tighter than they used to be since the economic downturn, and being a new business you will be seen as more of a risk than an established business. However, with a sturdy business plan with bright future forecasts you may have more of a chance with other sources, such as private investors.
     
  17. partho

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    For taking a loan from any bank or any other sources. First they will see your business plan. how will you execute that business.how much revenue you can earn from that currently what are your source of income. and finally for mortgage they will valuate with your asset means your property, house etc. then any bank will provide you loan
     
  18. policybazaar9

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  19. Andreas Vanaerde

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    If you own a business free , and clear of debts , you are in a better position ; it is all about collateral , credit worthiness , and ability to pay back .. if you fail on one of these points .. you need to find personal investors .. banks are really tough ..
     
  20. ibankmarketing

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    iBank is an internet finance business that helps connect small businesses to resources they need. Think of us as a match-making website for small businesses that need funding. We have thousands of business in our network so check us out if you are interested!
     

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