Business For Sale & Franchise Search Engine  
   
My Account
Search Businesses For Sale
Location:

Category:

to refine your search results use advanced search  
Franchise Opportunities
Search all our
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > Small Business Loans for Small Business Owners

Small Business Loans for Small Business Owners

Every American dreams of having their own business and while most of us will never be corporate giants, many of us can more easily achieve the goal of having our own small business. It will certainly mean a dedication of energy and a commitment of long hours to make this dream a reality, but what most of us don�t realize is that it will also require a small business loan. We may need some initial funding to open the doors on our new hardware store or barber shop or we may require a small business loan to keep our gardening center operating through the long winter season.

Whatever the reasons for our small business loan there are certain requirements that any bank or financial institution will ask us to meet before they lend us back some of the money that we have deposited with them over the years. Those requirements can be summed up as being eligible and creditworthy in the eyes of the banks and financial institutions. Once we can do that we can then be eligible for a number of forms of small business loans in order to be successful entrepreneurs.

The Small Business Administration of the federal government is one source of funds for small business loans. They make available guaranteed amounts of money for banks to provide to small businesses who meet the criteria noted above. One of the most common small business loans is called a 7 (a) loan. This refers to section 7 (a) of the Small Business Act and authorizes the agency to provide a series of financial assistance options to owners of small businesses. Banks and other commercial lending institutions can access these funds to provide them to eligible small businesses and while the bank lends the money, the Small Business Administration guarantees payment if the lender defaults on the loan.

To become eligible for a small business loan the business must be able to show that it has the capacity to pay back any monies that are borrowed. That means that a company must be able to show proof of revenue and customers to the bank in sufficient quantities that they can no longer continue to operate but can also pay back any monies borrowed at the same time. Once this information is presented to the bank they can then make a judgment on the eligibility of the small business loan request.

The second criteria, being creditworthy, is a little more complex and involves research by the bank on the company and its principals to see if they have a proven track record of paying their bills in the past. One document that may be requested is called a "Statement of Personal History" from each owner or operator of the company to verify this information.

About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a weekly e-newsletter on Starting and Growing a Small Business at http://www.smallbusinessconsulting.com You can sign up for their free newsletter by visiting http://www.smallbusinessconsulting.com










Related Resources
Small Business Articles
5.5 Ways to Improve Your Business… RIGHT NOW!
7 Reasons Why Small Businesses Fail - And What To Do About It
Advantages and Disadvantages of a Start-Up Business
Auto Franchises
Business Lawyer
Businesses for Sale by Owner
Coffee Franchises
Costs of Hiring a Website Designer
Different Web Design Techniques
Dispelling the Common Myths about SBA Financing
Do Home Based Businesses & Franchises Really Work?
Do What You Love or Love What You Do
Do You Need Bricks and Mortar Anymore?
Does a Small Business Really Need a Website?
Easy Ways to Cut Business Costs
Financing The Deal
Food Franchises
Franchise Information
Franchise Loans - Apply for a Loan to Buy a Franchise
Franchise Reviews
Free Advertising For My Business
Free Small Business Magazines
Getting Into Business: Don't Start It! Buy It!!
Helpful Tips for Your Small Business Website
House Cleaning Franchises
How Do I Obtain Capital To Invest In My Business Start Up
How Factoring Receivables Can Help Your Business Grow
How to Apply for a Small Business Loan
How to Find a Small Business Web Design Company
How to Form an LLC
How to Incorporate Your Business
How to Sell a Business Online
Incorporate A Business Online
Making Sure That Your Coffee Shop Will Be A Success
Market Your Business on the Web
Marketing Tools for the Small Business
Opportunities To Work From Home Are They Right For Me?
Planning Your Small Business Website
Position Your Business to Outshine the Competition
Protect The Merger Or Sale Value Of Your Business: What You Can Learn From The DaimlerChrysler Deba
Purchase Equipment to Save on Taxes
Run Your Business Like You Have To Sell It
Sell a Business
Sell a Franchise
Should I Franchise My Business?
Should I Incorporate My Business
Signs Your Small Business Needs Debt Restructuring
Small Business Debt Relief
Small Business Health Insurance Options
Small Business Idea - How Can Problems Make Great Ideas For Businesses?
Small Business Loan Calculator
Small Business Loans for Small Business Owners
Small Business Payroll Solutions
Small Business Phone Systems
Small Business Resources
Small Business Web Design
Small Business Web Design Companies
Small Businesses - Survival of the Quickest
Starting a New Business - Is There a Big Enough Demand?
Starting a Small Business in Less than 24 Hours
StartupNation's 5 Startup No-No's
Steps to Starting Your Own Business
The Advantages of Unsecured Business Loans when Buying a Business
The Art of Business is the Art of Relationships
Turn Personal Expenses Into Business Deductions
Twelve Stress-Busting Tips for Small Business Owners
Unleash Your Marketing Creativity and Increase Sales
Using your Business Plan
What is a Balloon Payment?
What is an Angel Investor?
What is an LLC?
What is an Unsecured Small Business Loan?
What is an Unsecured Small Business Loan?
What is an Unsecured Small Business Loan?
Why Buy an Existing Business?
Work From Home Scams
Working with Web Designers for Your Small Business
Your Web Design Contract for Your Small Business
©2024 MH Sub I, LLC dba Internet Brands
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Cookie Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us | Manage Preferences Your Privacy Choices