How to get a commercial loan

Money makes the business world a success. Whether you plan a new business or develop an existing business, getting a stable and mobile source of funding is an important factor. There are many new entrepreneurs who are intimidated by the task of lending, not even knowing where to start.
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  This is a practical guide on how to prepare and develop your own business ideas when applying for and successfully obtaining a commercial loan.

1. Understand the standards for banks seeking small loans. Different banks and lenders may have different standards, but in general, when you apply for a commercial loan, you should be able to meet the following conditions so that they can consider you:
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  • Your loan is for reasonable business purposes. For example, companies must meet the scale, the use of loan proceeds and the nature of the business [no loans, speculation, passive investment, pyramid sales, gambling, etc.]
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  • You and your partner have a good character, a wealth of experience and a good personal and / or commercial credit history
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  • You have the ability to repay the loan. This can be in the form of a commercial/skin collateral or personal equity investment in the game.

2. You have the basic documentation to submit. You will need the following files. Different lenders may need more or less credit.
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  • Personal and business credit history
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  • Personal and corporate financial statements and projected financial statements for existing and start-ups
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  • Powerful, detailed business plans [including personal information such as BIOS, education, etc.]
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  • Cash flow forecast for at least one year, and
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  • Personal guarantees from all major business owners

3. Research on banks and lending institutions. Learn about commercial loans, such as banks and banks, before you really get close to lenders. The accounting system, so you can have an intelligent discussion with the lender when the time is right.
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  • Choose your bank and lending institution carefully; a business unit that is right for you.
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  • Contact the person you worked with or your customer
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  • Look at community banks and credit unions
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  • Thoroughly bring everything they ask for. Many loan applications were rejected or faced with unnecessary obstacles due to incomplete applications.

4. Determine the size of the commercial loan you want. The typical size of a small business loan. Some commercial loans average between £100,000 and £200,000. Much depends on the business's financial needs and business size, such as a company's startups and hundreds of employees.

5. Have a good business plan. Since many banks want to fund growth, it may be more difficult to get commercial loans for new businesses. Many start-ups seek financing for family, friends and credit cards. However, if you have a strong business plan and the credit of the loan is reasonable, then you can get a better chance of successful business loans.

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