Getting a Small Business Loan
A Home Business Article Contributed by Fiona Mclaren
What is a Small Business Loan?
If you are thinking about opening a home based business, you may want to consider getting a small business loan. But what exactly is a small business loan?
Simply put, a small business loan is an amount of money leant to you by a broker in order to finance the start up of your home based business.
Why Get a Small Business Loan?
Small business loans are a secure way of making sure that your small business gets off the ground successfully. It can take a lot of money to start a home based business, and that is money that a lot of entrepreneurs don't have straightaway. And that's understandable. After all, how can you have money before your small business has ever even made a profit? That's where a small business loan comes in.
Your home based business can borrow variable amounts, depending on your business's circumstances.
How to Get a Small Business Loan
If you want to get a small business loan, then perhaps one of the first things you should do is draft up a business plan. Your business plan should highlight your company's product, ethos, goals and targets. It should also focus on your projected income, your target customer base, and your growth and expansion plans.
A small company's business plan needs to be well thought out, accurate, and persuasive. You need to be able to convince lenders that your business is worth investing in. You have to prove on paper that your home based business can generate enough profit to quickly, and fully, pay back any money that you have borrowed. If you can't show this, then lenders will be reluctant to lend your business any money. And can you blame them?
A good business plan should comprise of a compilation of elements. Not only should it have the earlier mentioned qualities, it needs to be presented in a professional manner, written concisely, and have a thoughtful and logical progression. Remember, people often won't see your dream as clearly as you do. So you need to be as convincing and business-like on your business plan as you can.
There are some things that you should definitely NOT do when you write up your small business plan. The first of which is you should never show any sign of confusion over what you want to do. You must have a clear and defined company mission that states without ambiguity what you are going to achieve as a company.
You should also steer clear of not showing commitment. It is vital that your lenders believe that you will see this project through to the end. They will not have any confidence in you - nor will they lend you any money - if they feel you are only in this to make a quick buck.
Whatever type of home business that you decide to run, you should make sure to look in to small business loans. The extra money could help you to hit the ground running.
