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Item Upon - How to Apply for a Small Business Loan
If You Are Involved In Sales Or Marketing In Any Way ... Here Are Some "Mental Performance" Statements AKA: Positive Thinking Affirmations ...You Can Use And Practice To Put Yourself In A Comfortable Frame Of Mind, Before Talking To Your Prospects ... To Help You Get Started And To Stay Motivated. · I'm A Master Of Marketing · Talking To Prospects Is Easy For Me · I'm Talking To A Friend · I Really Care About This Person · I'm Great At Asking Questions · I'm A Wonderful Listener · I'm Much Better Than An Ordinary Salesperson · My Skills Go Far Beyond What A Salesperson Does · I'm Caring, Real And Human · I Want To Know Your Concerns · If I Know Your Concerns, I Know What To Say To You · I Want To Know What You Think · I'm Great At Asking "What If?" · I'm Unattached To Getting My Result · I Imagine My Success · I Feel My Succes
What is the loan process? Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.
The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.
After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and you
If you have employees, you are responsible for payroll taxes. This is a term that lumps all the different forms of employment taxes into one category known as “payroll tax”. In reality, payroll taxes encompass Federal and state income tax withholding, social security and Medicare taxes (also known as FICA), Federal unemployment tax (FUTA), as well as any state and local unemployment taxes assessed. Payroll taxes are deducted each pay period from an employees gross pay. The remaining money distributed to the employee is what is known as “net pay”.Along with any taxes deducted from an employee's wages, there is a social security and Medicare liability incurred by the employer. You must match the social security and Medicare amounts withheld on each employee. This is the employer paid contribution. Until recently, most employers reported and paid payroll taxes quarterly. With the advent of the EFTPS, or Electronic Federal Tax Deposit System, taxes are now paid on a monthl
What are the first things the lender will look at? The following are the five basic items that all lenders look at before they will approve your business loan:
1. Credit history One of the primary factors lenders look at is the condition of your personal and business credit. This is generally reflected in your credit score that is obtained from the three credit reporting agencies. Your personal credit score is associated with your Social Security number, but business credit reports are tied to your tax ID number. Before you even start shopping for a loan, request a copy of your credit report from all three major reporting agencies: Equifax, Experian, and TransUnion. Review it carefully and correct any mistakes before you start the application process.
2. Your investment Business loan applicants should have a reasonable amount of their own money invested in their business. Lenders want to know that you will be motivated to work hard to make your business a success. When they see that you have invested a substantial amount of your own money in your venture, they will assume that you will work hard to make it a success. The amount of your required investment may vary, but it should be at least 20% of the amount you need for the business venture.
3. Working capital Working capital consists of your current assets minus your current liabilities. Working capital can also be thought of as cash on hand or what is available to pay current debts and keep your business running. A lack of adequate working capital increases the risk that your business will fail and makes lenders much less likely to approve your loan.
4. Ability to repay Banks want to see two sources of repayment: cash flow from your business and a secondary source which is typically collateral. Lenders will look at your past and projected financial statements. They will want to see your personal financial statements, personal tax returns for the past two-three years, business financial statements for the past three years or for three projected years, and accounts receivables and payable aging. If your business has consistently made a profit or you can reasonably project a profit, you are more likely to get approved. If your business has not been consistently profitable, you can increase your chances of getting a loan by including detailed information of new opportunities, new contracts, or other information showing that your company’s future will be profitable.
Most lenders require collateral to secure the loan. Collateral is required for all SBA loans. Collateral can be business assets and personal assets. If you plan to purchase equipment and other assets with borrowed funds, these assets will be used as collateral for the loan. Lenders will also require you to personally guarantee the loan.
5. Experience and character Lenders will expect you to have experience in the type of business that you plan to run. If you do not have that experience, lenders will expect you to hire people who have experience. Even if you do not have experience in this type of business, you should at least be able to show experience in other businesses and managerial experience.
What documents will lenders require? In order to expedite the process, the following four documents should be available for the lender to review:
1. Business plan A business plan is particularly important for new businesses, as they lack a track record for lenders to review. Your plan should convey all important facts about your business in a concise manner. A professional business plan will be at least 20 pages long, plus financial projections. The business plan will include:
Balance sheets, Profit and loss statements, and Cash flow projections
from the last three years or for three years’ projections.
Accounts receivable and payables aging
breaking your receivables and payables into 30, 60, and 90-day categories.
Market data showing demand for your type of business
Research on competitors including their customer base and price points
2. Loan request This can be included with the business plan and should detail the amount of money requested, how the loan funds will be used, the type of loan, the amount of working capital you have, the collateral that will secure the loan, the personal guarantees of the loan, and how the loan will be repaid.
3. Personal financial statements You will need to provide personal financial statements for anyone who owns 20 percent or more of the business. The financial statements must include a complete schedule of assets, debts with balances due, payment schedules, maturity dates, and collateral used to secure other loans.
4. Other documents Lenders may also require articles of incorporation, taxpayer ID number, legal descriptions of real property, leases, equipment inventories with serial numbers, proof of insurance for collateralized items, and letters of intent showing that commercial accounts intend to do business with you.
What is the loan process? Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.
The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.
After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and your
I have been in business for myself for many years and have struggled with the fact that no one really wants to give me capital to run my business. Even when approaching friends, family (and fools) I never got the Wow that sounds exciting and I would love to be a part of it or at least loan you money to get it going. Sound familiar?There are plenty of nay-sayers no matter what you try to accomplish. It is the postives that are more important when it comes to putting money into the company. Myself, I do not tend to tell my family much about what I am doing but there are plenty of strangers that are just as excited as I am. So where do you find the money to run your business? The answer is quite simple, but the work involved is not that easy, however, the results are certainly worth the effort.The first step in the process is to review your credit reports. You are likely the same as everyone else, you know you have credit reports but do not tend to think of them as
3. Working capital Working capital consists of your current assets minus your current liabilities. Working capital can also be thought of as cash on hand or what is available to pay current debts and keep your business running. A lack of adequate working capital increases the risk that your business will fail and makes lenders much less likely to approve your loan.
4. Ability to repay Banks want to see two sources of repayment: cash flow from your business and a secondary source which is typically collateral. Lenders will look at your past and projected financial statements. They will want to see your personal financial statements, personal tax returns for the past two-three years, business financial statements for the past three years or for three projected years, and accounts receivables and payable aging. If your business has consistently made a profit or you can reasonably project a profit, you are more likely to get approved. If your business has not been consistently profitable, you can increase your chances of getting a loan by including detailed information of new opportunities, new contracts, or other information showing that your company’s future will be profitable.
Most lenders require collateral to secure the loan. Collateral is required for all SBA loans. Collateral can be business assets and personal assets. If you plan to purchase equipment and other assets with borrowed funds, these assets will be used as collateral for the loan. Lenders will also require you to personally guarantee the loan.
5. Experience and character Lenders will expect you to have experience in the type of business that you plan to run. If you do not have that experience, lenders will expect you to hire people who have experience. Even if you do not have experience in this type of business, you should at least be able to show experience in other businesses and managerial experience.
What documents will lenders require? In order to expedite the process, the following four documents should be available for the lender to review:
1. Business plan A business plan is particularly important for new businesses, as they lack a track record for lenders to review. Your plan should convey all important facts about your business in a concise manner. A professional business plan will be at least 20 pages long, plus financial projections. The business plan will include:
Balance sheets, Profit and loss statements, and Cash flow projections
from the last three years or for three years’ projections.
Accounts receivable and payables aging
breaking your receivables and payables into 30, 60, and 90-day categories.
Market data showing demand for your type of business
Research on competitors including their customer base and price points
2. Loan request This can be included with the business plan and should detail the amount of money requested, how the loan funds will be used, the type of loan, the amount of working capital you have, the collateral that will secure the loan, the personal guarantees of the loan, and how the loan will be repaid.
3. Personal financial statements You will need to provide personal financial statements for anyone who owns 20 percent or more of the business. The financial statements must include a complete schedule of assets, debts with balances due, payment schedules, maturity dates, and collateral used to secure other loans.
4. Other documents Lenders may also require articles of incorporation, taxpayer ID number, legal descriptions of real property, leases, equipment inventories with serial numbers, proof of insurance for collateralized items, and letters of intent showing that commercial accounts intend to do business with you.
What is the loan process? Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.
The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.
After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and you
Telephone interviews are usually used as the first stage in the screening process. Although people sometimes get nervous about them, they're actually a chance for you to make a great first impression. Being offered a phone interview is a really good sign. It means the company is seriously considering you for the job. It also saves you the time and expense of travelling to a face-to-face screening interview. Telephone interviews are normally quite basic, without too many trick questions.Typically, a company will want to get to know you a little - get a feel for the personality behind the CV. They'll probably ask you a few questions about your CV, work experience, skills, background and why you want the job. It's easy to prepare for this type of question, before they call you. It's really important to take a telephone interview seriously. It's more than just a chat: the interviewer will be deciding whether to invi
Most lenders require collateral to secure the loan. Collateral is required for all SBA loans. Collateral can be business assets and personal assets. If you plan to purchase equipment and other assets with borrowed funds, these assets will be used as collateral for the loan. Lenders will also require you to personally guarantee the loan.
5. Experience and character Lenders will expect you to have experience in the type of business that you plan to run. If you do not have that experience, lenders will expect you to hire people who have experience. Even if you do not have experience in this type of business, you should at least be able to show experience in other businesses and managerial experience.
What documents will lenders require? In order to expedite the process, the following four documents should be available for the lender to review:
1. Business plan A business plan is particularly important for new businesses, as they lack a track record for lenders to review. Your plan should convey all important facts about your business in a concise manner. A professional business plan will be at least 20 pages long, plus financial projections. The business plan will include:
Balance sheets, Profit and loss statements, and Cash flow projections
from the last three years or for three years’ projections.
Accounts receivable and payables aging
breaking your receivables and payables into 30, 60, and 90-day categories.
Market data showing demand for your type of business
Research on competitors including their customer base and price points
2. Loan request This can be included with the business plan and should detail the amount of money requested, how the loan funds will be used, the type of loan, the amount of working capital you have, the collateral that will secure the loan, the personal guarantees of the loan, and how the loan will be repaid.
3. Personal financial statements You will need to provide personal financial statements for anyone who owns 20 percent or more of the business. The financial statements must include a complete schedule of assets, debts with balances due, payment schedules, maturity dates, and collateral used to secure other loans.
4. Other documents Lenders may also require articles of incorporation, taxpayer ID number, legal descriptions of real property, leases, equipment inventories with serial numbers, proof of insurance for collateralized items, and letters of intent showing that commercial accounts intend to do business with you.
What is the loan process? Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.
The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.
After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and you
When pitching your expertise to the media, the tools you present to them are of up most importance. In sales, it's often said you only have one chance to make a good impression. Why would this be different with the media?Once you have their attention, wow them with your professionalism and understanding of how to make their job as easy as possible.First, start with a communications plan that lays the road map for your coming PR & media efforts. You would not start a business without a business plan...why would you start a PR campaign without a plan?Develop a press page on your website. So often we refer clients to our website but when the media visit, what's there to entice them? Develop a section on your site that lists off press releases, previous stories, possible story lines, or even downloadable images. A fantastic example of a press page can be found on North Carolina's Tourism website: http://www.visitnc.com/press_room.asp/.D
Balance sheets, Profit and loss statements, and Cash flow projections
from the last three years or for three years’ projections.
Accounts receivable and payables aging
breaking your receivables and payables into 30, 60, and 90-day categories.
Market data showing demand for your type of business
Research on competitors including their customer base and price points
2. Loan request This can be included with the business plan and should detail the amount of money requested, how the loan funds will be used, the type of loan, the amount of working capital you have, the collateral that will secure the loan, the personal guarantees of the loan, and how the loan will be repaid.
3. Personal financial statements You will need to provide personal financial statements for anyone who owns 20 percent or more of the business. The financial statements must include a complete schedule of assets, debts with balances due, payment schedules, maturity dates, and collateral used to secure other loans.
4. Other documents Lenders may also require articles of incorporation, taxpayer ID number, legal descriptions of real property, leases, equipment inventories with serial numbers, proof of insurance for collateralized items, and letters of intent showing that commercial accounts intend to do business with you.
What is the loan process? Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.
The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.
After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and you
Let me make my position very clear…design absolutely matters. Whether it is aesthetic, functional, creative, process, innovative, intellectual, technical or applicational…design matters. While I have heard many a professional downplay the value of design, it has been my experience that most business people that espouse this opinion are commenting on something outside of their domain expertise in an attempt to justify a competing agenda or a position of ignorance. While this position may seem a bit harsh, it is nonetheless true. In today’s blog post I’ll examine why design matters.What do you think when you experience poor design? Are you likely to adopt a new software application that is poorly designed? When you are handed a business card that was printed at Kinko’s are you impressed? Are you likely to read a piece of collateral material that is poorly designed? If a newly implemented business process has design flaws will employees follow the process or circumvent it? Is po
What is the loan process? Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.
The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.
After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and your company) on the same page. The letter of intent will include the names of all parties, amount of financing, type of collateral, and other key terms. After all underwriting conditions are satisfied, the final loan package is resubmitted to the loan committee for final approval.
At this point, the lender will issue a final full loan commitment. If your loan is approved, you will receive closing documents and they may be handled by a title company. The title company will record deeds and mortgages, order title insurance, coordinate the exchange of funds, and arrange for you to sign the loan documents. At the closing, the lender funds the loan with a cashier’s check, draft, or electronic wire transfer.
Being prepared and organized can save time and help your loan get approved. Be prepared to have all required information ready to submit if your lender requests it.
Jo Ann Joy, Esq., MBA, CEO The future of your business starts here!
You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email at joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Rd., Phoenix, AZ 85016. I have many published articles, and I will send any article to you free of charge. Most consultations are free.
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