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New business loans; helping an entrepreneur wear the hat of a financer


									                             Okay, so you are high on the clouds! You
have a great business idea and you just want to get on with that. You
have a business name, you have the intellectual force, management plan,
you have everything. Well, almost everything. You don't have the required
funds. There is this major hurdle - raising funds. New business loans can
channelize your business initiative in the right direction. New business
loans are a huge responsibility. A proper new business loans is
fundamental to starting a business and ensuring its expansion. Raising
money for new business will not be possible without proper information
and preparation. The most common source of new business loans funding
comes under banks and credit unions. There is no need to believe that new
business loans are harder to procure. Prepare written proposal especially
if you are looking for new business loans. Approval of business loans
considerably depend on how well a proposal is written by you. You would
not find new business loans if you falter in your presentation. Every
lender will be looking for repayment when he is making a decision about
extending new business loans. A written proposal will contain general
information and details about financial status. Business name, name of
proprietors, with their social security numbers will constitute the
general information. Details about the new business loan, the amount
required, its purpose and usage will be imperative. Also, mention the
nature of new business you are trying to venture in. Provide some
information about your education, experience, skills and achievements.
Your personal financial statements and of partners will be required.
Don't forget to give details about the collateral you are offering. New
business loans proposal will be practically incomplete without business
projections. Business projections will include details about how positive
cash flow will be achieved. Give information in the profit and loss
figures explaining income and expense. Provide concrete examples, easily
identifiable from industry standards. Write in a way that can be
described with industry standards and which is easily understandable. New
business loans can be either long term or short term depending on your
financial demands. Short term loans will have a loan term up to one year.
On the other hand, long term loans have loan term ranging from 1-7 years.
This term can extend to 25 years in case you are applying for equipment
and real estate new business loans. Entrepreneurs can get start up
business loans ranging from £15,000-£250,000. Some lenders may be willing
to offer more as new business loans. However, you should be able to prove
that you will be able to repay it. An important consideration of new
business loans lenders is credit ratings. Credit history and credit score
is the single most significant criteria that helps the lender to decide
whether to provide the borrower with the loan or not. Many people are
practically unaware of their credit score or whether they have a credit
score or not. Three major credit scoring agencies - Experian, Trans
Union, Equifax - will enable you to find your credit score. Check your
credit report carefully and see if there are any mistakes or changes.
They can be easily corrected if you happen to inform the credit reporting
agency. Credit score above 620 is considered good credit. Anything below
will start having problems finding credit on their terms. Below 540 is
considered bad credit. New business loans are available for bad credit
borrowers. But, only few borrowers are willing to work with them and will
come with the drawback of higher interest rates. When starting new
business, dedication and passion are not enough. You will find that
finances are something without which your skills and efforts will not be
suitably translated. New business loans can provide you with the finance
that you want and get you the success that you deserve.

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