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If you are like many entrepreneurs who are just starting out, they it is likely that you are about to encounter a first time business loan. This may seem like a bit of a daunting task, but in reality, it is not all that bad. Getting a first time business loan, even in today’s economy, rests upon the building of a strong foundation: having a solid business plan, knowing what lenders to go to, and knowing how to pitch it.
Having a solid business plan is, of course, the most essential part of getting a business loan. Obviously there is good work that must be done. However, without knowing where to go for financing or how to market your strategy, a good business can unfortunately meet the fate of many other potential businesses that could have made a lot of profit and made many people happy in the process. So with that in mind, it is important to know what sorts of lenders you want to go to. You will probably find that smaller banks and credit unions are good for first time business loans in a way that large corporate banks simply are not. They are much looser with their regulations and do not have the same restrictions, including the high cost of overhead, that the larger banks are burdened by. You may also want to consider going for an SBA loan or an P2P loan, as both of these offer a number of opportunities that are simply not available to individuals on the mainstream private market.
Finally, once you have your lenders lined up, you will want to have super-strong business proposal. Your business proposal will detail the who, what, why and how of your business, and the goal should be to make the lender confident in your ability to repay a first time business loan. Provide a clear outline of your business strategy and the people involved in it, and pitch it so that he knows that you are on top of your game.
