When starting a business or if in need of some financial help for an existing business, there are several business finance loans. Depending on the size of the loan and the business will help in the decision on what one is right for you.
Guaranteed Loans From the Small Business Administration
The small business administration does not give you the loan directly but can guarantee the financial institution that it will be paid. These loans go according to the requirements of the small business association. The 7(a) loan program is the most flexible and the one that SBA uses primarily. The major types of 79a) loans are express programs, export loan programs, rural lender advantage program, special purpose loans program, CDC/504 loan program, microloan program, and disaster assistance loan program. These loans are made for existing and start-up businesses.
Before Applying for a Small Business Administration Loan
There are a few things that you need to do before you apply for any loan programs. Before obtaining a loan with the SBA, you must first try to get financed through a different source. If the terms are reasonable and you qualify, you will not need SBA.
If you do not qualify, then you may apply for an SBA loan program if your business meets the requirements of being a small business. Check the types of loans that they offer and be sure you meet the requirements. Make sure the program you apply for will give you enough financial help that is needed. Look to so see if there are any specifications you need to know.
Financial Information for Business Finance
Some of the financial information for your business finance will be different depending on if you already have the business or are just starting. If you have an existing business, then you will need the last three years of financial statements. This includes income statements, balance sheets, and your net worth. If you are starting a business you will need to supply them with a projection of one-year about income, cash flow, and expenses.