Thursday, April 17, 2008

Getting Loans For Small Businesses

Businesses need cash to operate. Whether yours is a new or an existing business, you rely on a healthy cash flow to keep your business performing the way it should. Unfortunately, the cash is not always flowing the way it should. For those times you will need to know where you can find loans for small business.

The economy has a big impact on the financial health of any business. Sales might be booming, and the money is pouring into your business, then the economy turns, and that income can dry up very quickly. No income means a reduced cash flow. Over time, that reduced cash flow could drain any cash reserves the business may have built up. When that happens, it is necessary to find another source of temporary cash to get your business through.

For established businesses with a good credit history, obtaining a loan for small business is not typically that difficult. Chances are you already have established a relationship with a bank, and that will make it easier to get your loan. If you do not already have a relationship with a bank, it may take a little more effort to get your loan, but if your business is established, and your credit is good, most bankers will be willing to work with you.

If your business has not been in existence for very long, or if you have run into financial difficulties in the past, it may be a bit more difficult to get one of the loans for small business that are available. Rather than going through conventional channels, you may have to speak to a lender that specializes in unsecured loans.

These lenders will usually base the loan on existing credit card transactions. When you apply for the loan you will be required to show credit card transaction records for the previous three to six months. Once the credit is approved you will repay the loan by turning over a percentage of your credit card sales to the lender until the full amount of the loan is repaid.

There are two types of loans that are typically available to small businesses: lump sum loans, and line of credit loans. Lump sum loans are just what the name implies. When the loan is approved the total amount of the loan is transferred into your account in a lump sum. Interest begins accruing on the entire amount of the loan once the transfer occurs.

The second option that is available is to establish a line of credit. With this option an account is established, similar to a checking account. An agreed upon amount of money will be available to your business, and you can withdraw the money from the account as needed. This is a great option for businesses that will have ongoing need for cash, but they may not know exactly how much will be needed. They can withdraw as much or as little as they need, and the remaining balance will still be available to them when they need more money. A big advantage of this option is that your business only pays interest on the amount that is outstanding, rather than the entire amount available.

Being able to obtain loans for small business is sometimes the difference between success and failure for small businesses. Keeping the cash flowing means keeping the doors open.

Business Loan - Funds For Business Purposes

Financial support is very necessary in a business for smooth and successful running. With business loans, you get access to funds which can be used to finance any business needs. Business Loan can be availed through secured and unsecured forms depending on borrower's requirements and ability.

A large amount of money can be available through secured form of these loans. But for this you have to keep your valuable assets like home, car, bond, or any other acceptable form as security against the loan. Since no risk involved lenders offer this loan with low interest rate and flexible terms and conditions. The loan amount depends on equity of collateral with a convenient repayment terms of 5 to 30 years. However the amount will be somewhere flexing between £50000 and £300000.

On the contrary unsecured loan does not require any security for the loan approval. Besides having the benefit of no risk factor, this loan is approved very quickly because of its collateral free nature. The borrowed money is to be repaid within 1 to 10 years. Usually borrowers will avail an amount of £50000 and £100000 by this loan.

You can use these loans for any purpose like buying raw material, office furniture, equipments, paying off the salaries, buying a shop, official transportation expenses or any commercial unit.

Before these loans, the borrower is advised to make proper plans for the business. Detailed strategies should be made so that they can be presented to the lenders. This will help the businessman in convincing the lender about the viability of his business. And as a result, the borrower can get a suitable loan deal from the lenders.

If you have a bad credit history of making late payments or you defaulted on payments, had arrears or CCJs, the loan is still within your reach if you can prove that your business is capable of repaying the loan on time. Borrowers will get the loans at competitive rates from online lenders and at less additional charges by comparing different loan offers in it.

Business Loan provides funds to businessmen who want to expand their business or people who want to start a business of their own.

Personal Unsecured Loan: Get Loans Easily Without Any Collateral

You are trying to get loan but lenders are asking for some security and you don’t have one. Are you searching for personal loan where you should not keep any collateral? Well here is a scheme for all those who want bank loan without keeping any collateral- Personal unsecured loan.

Brief review
Personal unsecured loan does not require you to furnish collateral and, therefore, it is the safest way to borrow. Even if you are a homeowner, you can avoid putting your house as collateral and can opt for this loan. With this loan the applicant can borrow an amount between £1,000 and £25,000. If you want small loan amount for a shorter period, then this loan is the best option available to you. Personal unsecured loan has been increasingly getting popular in the UK financial market. There are two reasons behind the popularity of this loan. First, the borrowers in UK are getting more apprehensive and concerned about their security that is required in case of secured loans. Second, the increasing number of repossessions in recent past has made borrowers opt for personal unsecured loans. 

Rate of interest and repayments
Rate charged here is high because of absence of security. The repayment tenure ranges from 1 year to 7 years. Any default in repayment can lead to a legal action by the lender. So, even though money lender cannot repossess your property, he can still sue you in the court of law for any default in repayment on your part. Timely repayments can help to improve your credit score.

Advantages to borrowers 
• Fast processing and approval of the loan 
• No collateral required
• Competitive rate of interest
• Also available in case you have bad credit history 
• Less documentation in the absence of collateral

Applying for Bank of America Student Loans

Many college students are finding that they have many academic funding options ranging from federal loans to private loans. Each has its own advantages and benefits that set them apart from other financing institutions. If you do not know yet, Bank of America has not only established itself as one of the trusted banks in America it also boasts of reaching out to the needs of the prospective college students, particularly those who have dreams of graduating from college or university.

Bank of America has its own student loan division which focuses on addressing the financial needs of college students. They are known to provide valuable assistance needed to apply for student loans. Bank of America is said to offer education loans that are somewhat different from standard loans. It is best that you learn the various differences in detail in order to make an informed decision.

Bank of America Student Loans includes private loan packages. This option includes Education Maximizer Loan which is good for any student that has reasonable credit ratings. This loan package can be used for just about anything that is associated with the educational process. However as with any student loan you must be disciplined in your spending or you will end up out of money and needing another student loan.

Federally based Bank of America student loans are also available and are much in demand. The US Department of Education provides the loan to students that have met the academic and or credit rating requirements necessary to qualify. These loans can be applied for by either the student or the student’s parents. Public or federal loans generally have lower interest rates and more flexible terms.

Aside from private and federal loans, Bank of America Student Loans can either be certified or non-certified. Certification in this sense means that the loans have to be certified by your school. Examples of a certified loan from Bank of America are the Bank of America Private Loans and Bank of America TERI Loans. Non-certified loans from Bank of America include CampusEdge Student Loan and the Education Maximizer Loan.

In response to the growing number of students searching for student loans on the web, the Student Banking division of the Bank of America has established a website for use for students who are interested in filing student loan applications. The websites are helpful and are packed full of the necessary information on Bank of America Student Loans. You really need to go a good job of research on every student loan package you are considering. Once you have completed this exercise you most likely find that Bank of America student loans are a great way to fund your college education

Poor Credit Loans - Changing Your Poor Credit Score into a Good One

Sometimes it seems like there are simply not many ways to increase your credit score when you have poor credit. Getting a better credit score a means paying your payments on debt in a timely manner. Not paying all them appropriately will obviously hurt your credit files quickly. Leaving any account unpaid in any fashion will be cause for a reduced credit score. You'll need to look at various ways to correct your poor credit situation. Various institutions have implemented a poor credit loan feature that allows those with bad credit to improve their credit status.

This option available for those with poor credit will be taking loans out to change their poor credit status. Doing this will change your financial health for the better over time. Loans such as these have been widely offered by institutions to help repair ugly credit scores. Loans like these will be categorized into secured and unsecured categories. If you own a home that has a decent amount of equity, you'll have the ability to use your house as a security for your loan. This would be called a secured loan. These loans will have a much lower interest rate.

The other loan is a unsecured loan which oftentimes will not be available to those that have poor credit. However, in some cases these might be available. They're called unsecured basically for the fact that they don't have any asset underlying them has a security. Most financial institutions don't take these risks. You'll be lucky to find one if it is available in your area.

If you're fortunate enough to have many lenders in your area available for loan possibilities, you can shop around to find the best loan deal for you. You generally will want to look at the interest rate and the amount of time you'll be paying off the loan. Both of these criteria will affect the amount of interest you pay over the life of the loan. Each of these items should be as low as possible in order to not have to pay too much interest. However, the main reason for taking out a loan is to improve your credit score so basically you will be paying back the money that was lent to you plus a little extra. Therefore, there will be no reason to pay this back over a lengthy amount of time.

Some people have to watch out when implementing this method for improving their credit score. Don't even put your hands on this money that has been lent to you. Simply deposit it immediately into a savings account in order to keep your hands off that cash. You'll need this cash to pay back your loan plus adding a little bit out of your own pocket for interest. By all means, don't get tempted by this amount of money just because you have it. Try to have someone to hold you accountable to make sure you pay it back. Remember, the whole reason for doing this task is to increase your credit score for the future.

Not everyone will be wanting to implement this method for helping to increase their credit score. Also, doing this will not increase your credit score tremendously but every little bit will help when you're making inroads to increase your rating. Making your credit rating better takes various efforts in different ways to reach your goal. Remember that a very strong incentive will be saving tons of money through greatly reduced costs of borrowing in the future.

Credit Cards vs. Debit Cards - Which Is Better?

In general, the way a credit card works is you go to a store, or these days even online, pick out the item you want, plug in your credit card number and your purchase is complete. The item isn't actually paid for yet, as far as you're concerned, because no money has changed hands. After the transaction the merchant will receive payment from the credit card company who issued you the card, usually within 30 days and in turn you will receive a bill from your credit card company, also within 30 days, at which time you must remit at least a partial payment. Each credit card company has different terms. Some, like American Express, require you to pay your balance in full.

The way a debit card works is basically the same in most respects. You make your purchase, plug in your number or swipe your card and the purchase goes through. The merchant, again, will get paid by the company who issued you the debit card. Here is where the difference is. With a debit card the money already has to be in your account. In other words, you've already paid in a certain amount of money to be available to your debit card. By using the card the money is simply transferred out of your account and your balance is reduced until it reaches zero, at which time you have to pay more money into the account or the card can't be used.

The advantages of a credit card are that you don't have to have the money available at that time to pay for your purchase. You will usually have at least 30 days to pay for the item and even then, based on the terms of your card, may not even have to pay the whole balance.

The disadvantages of a credit card is that it becomes way too easy to use them and run up large balances. Then when it comes time to even pay partial payments it can be very difficult to make those payments. Add to that the finance charges and people with credit cards can run up large debts that they sometimes never recover from.

The advantages of a debit card is that you know you have the money in your account to pay for the item and you don't have to worry about future bills or finance charges. It's as good as cash without having to carry cash around with you.

The disadvantages of a debit card is that if you don't have the money in your debit card account then you can't use it. In a sense it's pretty much the same as if you don't have cash on you.

Many people feel that a debit card is just a compact cash equivalent and doesn't really offer much more convenience than cash. Others feel it is the only sure way to prevent yourself from falling into a financial hole that you may never recover from.

The debates between credit and debit cards will probably go on forever.

Wednesday, April 16, 2008

Which type of bank account user am I?

Banks are constantly trying to confuse us with new charges, incentives and ‘terms & conditions’. In order to foil their subterfuge and make sure you get the bank account which is cheapest, or most rewarding, for you, it’s vital to work out what kind of customer you are.
Are you constantly in-credit, or always overdrawn? Or do you move between one and the other through the course of a month? Take a look at your last few statements to get the true picture of your banking; this’ll tell you which type of account to plump for.
Constantly in credit: If you never touch your overdraft, not even by a pound or two, you should grab the account which pays the most interest on your positive balance. Go to Best Accounts if you’re always in credit

Always overdrawn: If your balance rarely creeps into the black, you need an account which charges you as little for using your overdraft as possible. Go to Best Accounts if you’re always overdrawn

Mix ‘n’ Match: It’s common to flit between being in-credit and using your overdraft facility, especially as the month draws on and your salary ebbs away. If this is you, go to Best Accounts if you’re in-credit and overdrawn

Are you a student or recent graduate? If so, you can easily beat the terms of the best of the above three types of accounts by using the Best Student Account or Best Graduate Accounts

Never pay a fee for your bank account

If you have a ‘packaged account’ from Barclays and NatWest banks, amongst others, watch out: these are an absolute pile of pants. Let me guess, they called you or mailed you to say “you’ll get much better facilities if you upgrade your account”.

Now think about whether you’ve ever used those facilities? Most people haven’t. Now consider how much you pay; £9 a month doesn’t sound much but it’s over £100 a year! Not only that but you can get better rates elsewhere without paying a fee. Ditch them!

Why can you reclaim bank charges?

The reason you can reclaim is simple; it’s because bank charges are unlawful. Of course, the banks don’t agree, which is why there’s currently a High Court case deciding once and for all. Yet this guide isn’t about making a political point; it’s a practical guide to getting your money back.
The law behind thisThe core argument is that banks should only impose charges which are in proportion to their costs. This is because under ‘breach of contract’ laws, the charge should not exceed the cost of the breach.
Yet go beyond your overdraft limit or have a cheque or direct debit payment bounce and the banks charge a penalty of up to £39 a time – even if you’re only £1 over the limit. Yet all it has to do is send a computer-generated automatic letter with a franked stamp. A report by a Professor of Banking estimated this costed only between £2.50 and £4.50. And this was being generous.Plus a second element of law says if the bank is ‘fining you’ for going over the limit, and this fine is too high, then under the law of penalties this is ‘extravagant’.
All in all, it means bank charges are unlawful, so as the banks had no right to grab your cash, but still did it, you’re entitled to get it back. The banks’ primary argument against it is that ‘unfair contract’ terms don’t apply to bank charges, and that’s exactly what the test case is deciding.Isn’t it in the terms and conditions though?
Of course, if you had read the terms & conditions when you got your back account, this was in there. Yet that’s irrelevant: a contract must be written within the law, and they can’t enforce a contract with legally unfair terms. Ultimately, if it isn't proportionate then it's unlawful, and thus you've a right to your money back. Let me use my favourite analogy for this:
If someone told you they were about to punch you before smacking you; it doesn’t make it legal. The same’s true with bank charges. No one’s saying there shouldn’t be bank charges, just that they are set massively too high; a few pounds would be more appropriate.

Choosing The Right Loan

Sadly loans come with more tricks; even worse, some of the lowest interest rate loans can be the most costly due to nasty hidden costs. Yet before you pick the type of loan it’s crucial to decide one thing.

How much, for how long?
The formula’s simple; borrow as little as possible, repaying as quickly as possible. To avoid complications, always base borrowing on what you can comfortably afford to repay (preferably after Doing A Budget), as over-borrowing can cause debts to spiral out of control.
Beware, while borrowing over a longer period spreads the debts and decreases monthly repayments, it massively increases the interest you'll repay. Borrow £10,000 at 7% over three years and the interest cost is £1,100; borrow the same over 10 years and it's £3,900.

Q.1 How's your credit history ?
Not good? …. Be careful with cheap loan applicationsIf your credit rating is less than top notch, applying for a cheap loan could do more damage than good. Most ultra cheap loans are typical rates; meaning only two-thirds of successful applicants will get it. All the others will either be rejected or offered the loan at MUCH higher interest rate. Worse still, the fact you’ve applied will be recorded on your credit file, and has a slight negative impact; meaning you need to pick what applications carefully.

Good to very good? …. Answer the next question

Q.2 Will you want to repay the loan more quickly?
Quite likely to repay early?... Personal Loan rates are fixed.
Personal loans are designed to be paid off over a fixed time; they rarely allow you to increase the monthly repayments, and try and repay early and you’ll often be stung with a penalty of up to two months interest to do it. If it’s not stretching your finances too far, shorten your repayment term to avoid this dilemma. If that isn’t possible, and substantial early repayment is likely, a flexible loan is the best option. While these have higher interest rates, as you’re likely to repay more quickly that should more than offset the cost.

Unlikely to repay early? .... Answer the next question

Q.3 Are you considering Payment Protection Insurance (PPI)
Before you answer…. Warning! PPI is the biggest loan scam around!
Many people have had these policies, which cost £1,000s, added to their loans without being told; sold it through fear-based sales tactics, or are told it’s compulsory, which it isn’t (if that’s happened to you, then read the PPI Reclaiming guide.) Payment Protection Insurance is supposed to cover you in the event of accident, sickness or unemployment. Sadly, while a useful concept, most loan insurance policies cost four times more than they should, are riddled with exclusions, and are sold to people who they don’t cover. Never simply agree to get it from your lender because it “sounds sensible” you can get it for a fraction of the cost elsewhere.

It’s a sensible precaution for us.
Most PPI policies only pay out for a year, so if you have no other funds, wouldn’t be covered by work-based benefits, and don’t have any other insurance policies that would cover your repayments for a year; then getting a policy may be a sensible move for you

Secured Loans Versus Personal Loans

Most high street personal loans are ‘unsecured’. Rather annoyingly, that sounds like a bad thing, but it isn’t. The alternative, and the kind you’ll see mountains of TV ads for, are ‘secured loans’, and for a number of reasons I’d steer well clear of those.

Your home could be taken away.
A secured loan literally means the debt is secured on your house, meaning if you can’t repay, the lender can repossess your home. With unsecured loans, it’s much much less likely this will happen.

Personal loan rates are fixed, secured are usually variable.
Almost every unsecured personal loan is at a fixed rate; you know exactly what you’ll pay from the start, and it won’t change if the UK’s interest rates do, or on a lender’s whim.
Yet secured loans have variable rates, meaning the lender can up your payments when it likes. With the Credit Crunch

The Credit Crunch, This is the name given to the current phenomena that banks and other big financial institutions are struggling to find money to borrow. As they can’t find money to borrow they’ve less to lend out, which means the cost of debt is increasing, and its availability is decreasing. In other words it’s getting more difficult and more expensive to borrow. Closebiting, many secured loans have seen rates doubling, hitting people’s pockets hard.

Secured loan repayments are stretched over many years.
Secured lenders often promise “one easy low monthly repayment”, while it may sound good, it’s done to stretch the debt over many years, so you pay more, and more, and more interest, costing you a fortune. As this is so important, in case I haven’t made the point strongly enough yet, here it is writ large…

“Secured loans give the lender security, not you. It’s far, far, better to take a normal unsecured personal loanthan one secured on your house.”

Secured loans are rarely a good move, and should be considered lending of last resort. They're only applicable in very limited circumstances (see the Secured Loan article). Those with reasonable credit scores should consider a personal loan, cheap credit card deals or even extending their mortgage instead.

Loans Versus Credit Cards

Personal loans let you borrow up to £25,000; the key sell being you get “structured repayments” so you know how long you’re borrowing for and what it’ll cost each month. Yet in general, borrowing on the cheapest credit cards substantially undercuts the cheapest loans; meaning in many circumstances they should be used first.

Are you trying to make existing credit card debts cheaper?
In most cases a loan won’t be cheapest for you. Credit card balance transfer deals are designed to allow you to shift other cards' debts to them at a special cheap rate, usually much cheaper than the best loan rates.
This doesn’t mean you need to keep shifting debts between short term 0% deals; some cheap deals last until ALL the debt is repaid (see Best Balance Transfers). Though do ensure you make at least similar repayments to what the loan would cost each month.

Do you want to borrow for under a year or less than £1,000?
Loans over short time periods or low amounts are almost always expensive. Instead there are a variety of techniques possible that cut the cost. Many credit cards allow new customers to spend on them at 0% for up to the first year. Providing you can make the purchase on a card, and will definitely pay it off before the 0% deal ends, that's the best option (read Short Term Interest Free Loans for full details).

Need to borrow for a specific purchase / a lump sum.
Here loans are difficult to beat, not because they’re particularly cheap, but as it’s difficult to do any other way. However if you’re money savvy, there’s a way to replicate the facilities of a loan using a credit card, cutting the interest rate to around 5%. Read Cut Price Plastic Loans.

Looking to try and cut the cost of an existing loan?

Don't automatically assume that switching to a cheaper interest rate will save you money. Many loans, especially older ones, have lock in penalties which mean even though you'll pay less interest, when you add in the fine for moving overall you pay more.

Instant Payday Loans - Get Financial Aid

If you are seeking for an instant financial support that comes with no clause of collateral, then instant payday loans are the most appropriate result to your search. This loan scheme is free from the limitations of offering security or any other asset for its approval. In addition to this, the applicant is also not required to go through the procedure of presenting the various documents and its verification by the money lender. Moreover, even the bad credit holders can gain the economic benefits of this instant payday loans.

While opting for an instant payday loans, make sure that your lender do not ask for any extra or added amount of charge for availing you this loan in such a short duration. Instant payday loans are designed with suitable components as its main motive is offering the applicant instant monetary assistance. Therefore, all the elementary objectives are completely hassle free and easy for the applicant to fulfill. To qualify for this loan the borrower is just need to have a fixed monthly income, so that the lender can stay assure with your repayment ability. On the other hand, to make the procedure more convenient, the issue of heavy documentation and verification is totally absent in the mechanism of instant pay day loans.

All the financial institutions such as banks, money lending agencies and finance companies are serving the option of instant payday loans. The borrower is just required to browse through the web and get the list of all such financial firms. Once you compile this list, you can gather the details about the various features of this loan available with different money lenders. Check out for the interest rate, loan amount offered and repayment tenure and on the basis of these elements, the applicant should decide for the most suitable money lender. One thing that must be focused here is the fact that instant payday loans are quite strict with their repayment tenure. However an extension can be given in case of valid reasons, but to avail this convenience the borrower has to submit an application regarding the extension three days prior to the date of payback. In addition to this, an extra amount will also be charged by the lender.

To increase the speed of these instant payday loans all the more, all financial firms offering this loan have let out the option of online application form on their websites. This online form is easy to fill and get submitted in a fraction of a minute. The entire procedure of drafting an application for the instant payday loan is easily manageable as the applicant is just required to present his personal information and employment details, with no extensive procedure of copying and faxing the documents. As soon as the online application form is submitted, the executives take the further action and the loan amount is transferred into the account of the borrower in just few hours. Therefore, nowadays more and more people are considering this loan to meet up their financial needs in the end of the month.

UK Finance - Fulfill Your Dreams

Different people have different needs and ability to execute them. People are in turmoil when they cannot spot scheme that can assist them in catering the personal ends. For the citizens of UK, the financial benediction is provided by UK finance. This scheme bestow amount in easy going manner. According to ones income and repaying suitability this scheme is formatted. The offers can be subscribed with or without the use of collateral. Collateral paves the way to borrow huge amount at low rate of interest rates. Thus, lenders usually unleash an amount from £ 5,000 to £ 1,00,000 with payback term of 10-25 years, when applicants place property as collateral. Citizens like tenants and non-homeowners, unable to pledge collateral can access amount between £1,000 and £ 25,000 for repayment term of 1-10 years.

By opting for any option, borrowers can materialize multiple demands. Personal demands like buying an expensive and luxurious car, weddings, going for holiday trip with family members, higher education of children, renovation of house etc. can be fulfilled. Both good and bad creditors can be benefited from this scheme. Bad credit holders can consolidate and get rid of unwanted adverse credit issues like county court judgment, defaults, arrears, late-payments, debts, bankruptcy etc. Thus, the applicants can plan to meet miscellaneous activities in a single scheme.

Due to the fierce competition among lenders the borrowers can avail the loan at reasonable rate of interest. However, if applicants personally contrast the various loan quotes of different lenders then they can easily procure cheap and lower interest rates. To collate loan quotes within less time prefer the service of online mechanism. The online is quick and abates the paperwork. This e-application enables the borrower to approach lenders from home or office.
Thus, at such an easy going manner UK finance is all set to make you realize your dreams.

How To Get A Bank Loan With Ease ?

If you are a first-time entrepreneur and you want to start your own business you are almost undoubtedly going to need a bank loan. Here are some tips on getting one. You must realize that because you dont have a business ownership track record securing a bank loan will be an uphill battle. That doesnt mean you shouldnt try but dont expect the process to be a cake walk. It wont be. Any bank will tell you that a small business loan has risk factors and that costs of servicing these smaller accounts are primarily responsible for their disinterest in offering a bank loan to an aspiring entrepreneur.

Your first time business bank loan can happen, however, and here are some ideas on how to increase your chances of getting that small business bank loan. The first thing to remember is to think positive and assume you are entering that bank from a position of strength. Keep in mind that you are customer, not a beggar. Banks sell loans, you buy. For the most part those banks want and need your loan business and the loan officers are tasked with getting your business. While it certainly is always a good idea to start with the bank that is familiar with you as a person - the one with which youve done business regularly - it is also important that you seek a bank that has underwritten loans for others in your industry and stays familiar with your industry. Look for banks that actively finance small businesses.

There are also banks whose specialty is government programs - participation by the government in funding or guaranteeing loans. Information on the latter would be readily available at your local Small Business Development Center of the Small Business Administration (SBA.)

Keep in mind, however, that no matter how dedicated to small business financing, the bank is going to ask for some fairly hefty collateral for your start up business. Be prepared to prove to that bank loan officer that lending you and your new company money is not a high risk proposition.

Complete your loan application prior to arrival if you can, bring copies of three years of financial statements such as cash flow, testimonials from satisfied and returning customers, your business plan and a cover letter that spells out why you need the money and how your business is now thriving and will only do better with that bank loan funding.

If you are fully prepared to ask for that bank loan, no question should surprise you. While you should have the details in your business plan already, be prepared to talk about how much money your firm will need and for how long, and what the bank loan funding will be used for. You'll need to talk about whether you are going to buy new equipment, supplies and assets, pay off some old bills, or spend it on operating expenses. Youll also need to show a well-thought-out and achievable repayment plan, with a payment schedule.

Two important points that should be made about your face to face bank loan interview are often discounted. The first is that you should dress professionally to meet the loan officer. Your garb should be that you would wear to meet a client. The other is that your documents should all be neat, easy to read, clear and clean.

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