How to Get a Small Business Loan
Whether you’re planning expansion or improvements of an existing small business, or you’re just now getting a new business off the ground, a small business loan can give you the financial support you need. Not all businesses can get a small business loan, so you need to take special care in applying for one. By ensuring that everything is as accurate as possible and by putting your business in the best possible light, you will improve your chance to get the loan.
Part One of Three:
Putting Your Best Financial Foot Forward Edit
Obtain a copy of your credit report to ensure that it’s accurate. You may even want to obtain a copy from all major credit reporting companies for your country. Most financial institutions review your credit report while they review your loan application.
Get together some essential financial statements. In order to qualify for a small business loan, the lender needs to be reasonably certain you’ll be able to pay it back. Here are some of the essential financial documents you’ll need to pay back:
- Complete financial statements for the past 3 years. These include, but are not necessarily limited to, balance sheets, income statements, and a reconciliation of net worth. 
- Current financial statement, no more than 90 days old.
- Term of debt schedule, as well as breakdown of accounts payable and accounts receivable (broken into monthly categories going back at least three months).
- If you are just starting your business and need a loan, provide your balance sheet and income statement .
Make a projection of future operations. This projection of future operations should go as far as a year or until positive cash flow is achieved, whichever comes first.  Type in “12 month profit and loss projection” into a reputable search engine for a pre-formatted spreadsheet that you’ll be able to work with.
- Try to follow industry standards when projecting your profits and losses. If you don’t follow industry standards, or you don’t know what those standards are, try to make explicit any assumptions you are factoring into your projection. This way, the lenders reading your application can better understand your methodology.
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