Aged Corporation Secrets » Business Startup Loans

What needs to be submitted with a business plan for a small business loan?

admin — Tue, 19 Oct 2010 14:20:11 +0000

I’ve finally finished my business plan but need to know if there is anything else I need to submit with my application for a small business loan. This is a startup so I don’t really have any other documentation to submit. Any info is appreciated!

I completed a 128 page Bus. Plan a few years ago. After taking 6 months to research and 6 months to put together I finally did it. Everyone (banks, sba, ect.) said for a small business startup I really blew them away. Later I found out that I could have gotten away with about half. Here is a basic list of what I included.
1. A written resume, not just a time line. Out lining your accomplishments.
2. A synopsis of your business. Be very creative. Include Designs of the inside and outside of your establishment if it is going to be a retail sales. Basicly how the building will impact purchases
3. Research. In your own words. keep copies of all articules and include them in a seperate area for reference for the investors. Include Graphs to help them visulize things. This helps during the stage when you meet with the investors
4. Marketing/ Advertising. How do you plan on doing this. Newspaper Ads. Radio Spots, TV Spots, Internet, ect. Show researching proving the best posible approach and how these people are going to be reached. The cost assoc. with this and what percent of your budget you will dedicate. Dont forget for retail you will want to include traffic counts
5. Demographics. This is more for retail. How lives where, How much do they make, ect. show research that proves the demographics match the demographics that utilize your type of bus.
6. List of all equipment or materials including opeining inventories need with quotes on costs.
7. Operating Capital. How much, how did you come to this number.
8. Pro Forma, Month to Month of all costs and revenues with economic indicators showing what percentage of revenue will be generated in that month compared to the overall year.
9. Money. how much do you need xxx for equipment, xxx for operating cost, xxx initial inventory, xxx buildout of the building or real estate. What you have put into the business so for. And how do you plan to pay it back. 5yr loan at 8% with a balloon payment in 3yrs. Operating Capital Loan will be on line of credit with no payments due for the first year. You get the picture.
10. Employees. how many, who are they, what is there requirements to work for you. are there key employees that you know are going to work for you, if so include there resume.
11. Business references. people who are known and respected in the community. Also include people who have already agreed to purchase your product or service. Have them write a nice letter outlining the agreement. This will help prove your revenue.
12. A Personal financial statement. you can get one from any bank. Of course try to chose one from one your going to use.
13. A copy of your credit report. They will pull their own but this helps show that you have done everything. And if you seek private money they will appreciate that you did this easy step.
14. News clippings or Periodical articles that prove your case. That the business you are venturing into is good
15. A copy of a list of all research. web sites, ect.
I would suggest that you place all of your personal financial info into a separate binder. So if you want to show it you can with out devulging everything. Then if there is real interest you hand it over
Bind everthing in a nice hard plastic cover. Office Depot does a nice job for a low cost. Spend the money for color copies on quality paper. Make extra copies. Banks will need two. Private investors will need one and always ask for a second. you will want to keep one. But its always great to have two extra copies. you will need it in a hurry and wish you had it.
Good Luck

Small Business Startup?

admin — Sat, 16 Oct 2010 23:11:19 +0000

I am looking to open a small business and need some information on small business loans and/ or grants available. Can anyone direct me to a good resouce for this information. I am a minority female and have been told that there a many grants out there available to me but I don’t know where to begin. Any help is appreciated.

You stand a greater chance of getting a government-guaranteed loan through the Small Business Administration http://www.sba.gov/financing than a government grant. Read the SBA Financing page to learn about criteria needed for borrowing

It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for starting a for-profit business.

One possible exception is for companies developing or exporting agricultural goods, including food and forest product. Another exception could be the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs http://www.sba.gov/aboutsba/sbaprograms/sbir/index.html , which fund the research and development of technological innovation that meets specific government needs.

Your best bet actually will be from the states if they offer grant programs for women (or any other special interest groups — minorities, women, disabled, veterans, etc). Or check with non profit organizations, particularly women organizations if they offer grants. Examples include

Iowa Women’s Foundation http://www.iawf.org/
New Mexico Women’s Foundation http://www.nmwf.org/guidelines.html

Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/mostrequesteditems/CON_FAQ2.html

"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."

Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.

Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business — THERE’S NONE.

http://12.46.245.173/pls/portal30/CATALOG.BROWSE_BENEF_RPT.show

Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT – Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program

Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women’s Business Ownership Assistance that are given to those who will create women’s business center that will train women entrepreneurs

I suggest you read the following books to get ideas of how to finance your business:

Financing Your Small Business http://www.amazon.com/exec/obidos/ASIN/1572484500/powerhomebizguid
Small Business Financing: How and Where To Get It http://www.amazon.com/exec/obidos/ASIN/0808007386/powerhomebizguid
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing http://www.amazon.com/exec/obidos/ASIN/1580626815/powerhomebizguid
The SBA Loan Book http://www.amazon.com/exec/obidos/ASIN/158062202X/powerhomebizguid
Angel Capital : How to Raise Early-Stage Private Equity Financing http://www.amazon.com/exec/obidos/ASIN/0471690635/powerhomebizguid
Financing Your Small Business (Barron’s Business Library Series) http://www.amazon.com/exec/obidos/ASIN/0764124897/powerhomebizguid

For private grants, you may want to check the Foundation Center’s Foundation Grants for Individuals Online http://gtionline.fdncenter.org . It’s a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for "students, artists, academic researchers, libraries and financial aid offices." Entrepreneurs are apparently not one of them, so I take it they also don’t have listings of private foundations who give grants to would-be entrepreneurs.

What is a business license? How do I get one? Do I need one to apply for a business loan?

admin — Tue, 12 Oct 2010 00:11:22 +0000

I’m applying for an SBA loan for startup capital for a small business in NC. I’m reviewing the paperwork, do I need to get a "business license" and/or a fictitious name statement?

business license is a legal document that grants you the right to operate a business in your city. depending on your business, there are other licenses that may also be required.

http://www.entrepreneur.com/encyclopedia/term/82288.html

a business license makes sure you are properly zoned or regulated to do business in a certain area.

a doing business as(dba) or fictitious name the operating name of a company, as opposed to the legal name of the company. some states require dba or fictitious business name filings to be made for the protection of consumers conducting business with the entity.

http://www.entrepreneur.com/encyclopedia/term/82258.html

for the most part you dont usually have to get a fictitious name for your business if your business is your name but if you go by anything other than your name you need one

i never applied for a loan so i dont know if you need them or not but that is what they are. i have an online store so i do not need a business license and its under my name so i dont need a dba. to best know what business license you need you need to get a lawyer…you probably need a lawyer in general anyway if you plan on running a business

good luck

What are some good ways to generate startup cash for a small business?not looking for loans or grants.?

admin — Wed, 06 Oct 2010 14:04:13 +0000

We took a second out on our home. If you aren’t wanting to get a loan then you can always try to find investors. We’ve noticed we have gotten a lot more people interested in investing in our business, once we already had things going. They like to see that you made some sort of sacrafice on your own. But it might just be the type of business we started.

Unsecured Business Loan?

admin — Sun, 03 Oct 2010 01:58:14 +0000

Quit my job as I want to start a Veg Restaurant in Chennai , looking for a Unsecured Business Loan ( Rs 6 lkh to Rs 10 lkh).

Please let me know which bank /financial org provides such loans .

Also is there anything like Business startup loans

The banks like ICICI bank are providing franchisee loan contact them for details .for unsecured loan you have to depend upon your good friends family member and relatives

Is it hard to get a personal loan to startup a small shaved ice business?

admin — Thu, 30 Sep 2010 01:53:44 +0000

I have good credit. And I have a second person who may sign with me. I just don’t have a spare $25k lying around so I need a loan to get started.

Honestly its not easy to get a loan without cash flow in place, there are tons of unscrupulous lenders that will though at rediculous interest rates. Get a good relationship with a local banker, open a biz account and explain your business. If you have good credit, dont take loans out and trash it.

Can minors get business loans?

admin — Mon, 27 Sep 2010 13:18:12 +0000

Hey,
I am a minor (under 18) and I really need around 17k to startup my business. I could, most likely, have my parents cosign to the loan, but first I need to find someone who can give me the loan. Does anyone know of a company that offers this type of service?

Also, I would like to return payments by giving X% of the profits of the company over X amount of years. Is that possible?

Thanks.
Remember, I said I could have my parents sign the loan instead.

Not only is it a responsibility issue, but it’s also unlawful for any minor to sign into a binding contract/agreement in the United States. Whether or not it’s permissible with a parent cosigner, I’m not sure, but I know you can’t get one on your own.

is it possible to get an online loan to startup my online business cos i dont have capital to do so?

admin — Fri, 24 Sep 2010 17:23:08 +0000

i want to start a small scale business with YAHOO!store but i dont have capital to get a computer,business phone,an internet service provider e.t.c, and i was wondering if i could get a loan for that. I will need all the help i can get from you.Thank you

No lender will talk to you unless you provide them with a valid business plan. Go to http://www.sba.gov , http://www.score.org or http://www.bplan.com for sample business plans and instructions on how to write a business plan.

Then, go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you.

SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.

Business startup?

admin — Wed, 22 Sep 2010 04:18:11 +0000

i am trying to start a business, i have a great idea, but i dont know how to write a business plan….i need one to get a loan…if you have a template or a know of a website that does, please share…

Use this basic checklist to make sure all the important steps are taken before you launch your new venture. This business checklist will make sure that you cross all your t’s and dot all your i’s before your business launch.

Steps to Starting a Business -

http://www.developer-resource.com/starting-a-business.htm

Other sites you might find helpful are:
SBA – http://www.sba.gov/
SCORE – http://www.score.org
Small Business Resource – http://www.small-business-software.net
Business Link – http://www.businesslink.gov.uk/bdotg/action/home

Goodluck!

Unsecured Business Loans?

admin — Sun, 19 Sep 2010 16:12:06 +0000

Are Unsecured business loans good for a startup business?

Yes.

Unsecured business loan is a good choice if:
1)Your credit score is 680+
2)You have no late payments, charge-offs or Bankruptcies
3)You do not need a lot of money (under $50,000)
4)You do not have a lot of collateral

Sincerely,
Marina Lando
President
Business Loan Quest

http://www.blquest.biz