If you have a new company you are no doubt trying to get additional funds in order to get your idea off the ground. It is common knowledge that most new companies do not reach profitability for at least a year or more and as such you will need enough money to cover most of your first year expenses. Many people will seek out capital through venture capitalists or through Angel investors and this is a viable option which I think you should consider as well. However for the sake of today’s discussion we will keep our scope limited to lending. We will attempt to answer the question: “What is the business loan process?”
The business loan process starts long before you actually attempts to apply for a loan. This is because most lenders will require you to have a formalized business plan before they will consider lending you any money. The reason behind this is that they must feel confident that you have a solid plan to be able to pay them back and if you do not have a viable business plan then you will not have the necessary resources to do so. So how do you create a formal business plan?
The SBA is a very useful resource for many new small business owners and I recommend that you reach out to your local branch as you seek out funding. Specifically they are able to offer a consulting service to sit down with you and work out your formal business plan. Is important to note that a business plan is not simply an overview of your idea but a much more specific document that entails all potential costs revenues profits etc. as such, it is very useful to be able to get professional assistance in creating this document.
Once you have a formal business plan you can use this as well as your other accounting information to reach out to lenders to attempt to borrow money. Once again the SBA is a very useful resource in this in that they can help you find lenders who are a good match for your particular business and your particular needs. This is not only useful for you but also for lenders as it streamlines the process of borrowing and lending money. As always I recommend that you seek professional advice before making any large-scale decisions of this type as making an informed decision is critical to your success.
For more information, go to business loans process at http://www.unsecuredbizloan.com/business-loans/loan-process