Getting a Small Business Loan is Like Asking People for Their Kidneys!

A Home Business Article Contributed by Marsha Maung

Getting a Small Business Loan is Like Asking People for Their Kidneys!

"I have this absolutely incredible idea and I was wondering if you would take a listen to it. I would like to get a small business loan from you for this new...." click! Your so-called best friend hangs up on you.

And you're wondering, 'What? No I love you, good bye? How rude! "

That's what this article is all about: asking people for a loan for our small business is like asking them for their kidneys. But unless you have some cash stashed up for this new business of yours, face it, you'd have to ask SOMEONE for a loan.

So, here's where you start.

Loan Advice 1: Dear Husband/Wife, I Have a Wonderful Small Business Idea.

Naturally, we go for the throats of those closest to us and the difficulty level of asking for a loan from our spouses depends on our shoe-polishing skills. But most of us should have no problem, just think back on those good ole college days. The dating days and first love, first kiss moments....

Some claim that they manage to wrangle a small loan for their business from their spouses because they used blackmail. If blackmailing works for you, go ahead, but I would suggest the danggle-a-carrot technique.

Loan Advice 2: Dear Mom/Dad, I Know You Love Me More Than You Love Yourself. but You'll Love My Small Business Idea More.

Naturally, if the threatening at home have reached a peak, try giving your parents a shot. But when approaching them for a loan for your small business, try not to go there with no plan - that's like going into the battle field with just one bullet. Plan and you'll have a machine gun in your hands.

First, you ask them nicely for a loan. Then you give them your idea about your small business. If they look skeptical, tell them your business plan. If they still wear a frown, tell them it's a SHORT term loan. No smile? Tell them that when you'll return them the money. A small smile appears now? Tell them you'll give them interest for the loan. With incentive, love comes back into the hearts of your doting parents.

Loan Advice 3: Dear Bank, I Have a Small Business Idea That Will Bring in Big Bucks...

You can first check your credit card statement and see if there's any space left for a small business loan. Normally, the first thing we want to do is to use the credit available on our credit cards in order to start our business....unless we can wrangle some cash from the above listed people. But if we don't, we have that reliable blood-sucking plastic card to rely on. It's normally called the credit card.

But if you've maxed out on your card, it's time to sit down to write a letter to your bank. Banks are always on a look out for small businesses because they are dying to give you a loan. That's the truth! They only make money if they give people loans, so, it's natural for them to want to give you money for your small business. But you have to write a very convincing business proposal. They want to know all about your small business and most importantly, they want a down-to-earth look at when you'll be making money so that they'll know if you'd default on payments.

Good luck!