Many people have the dream of starting their own business, but with 50% of businesses failing in the the first year lenders do not hand out loans to just anyone.  In order to avoid debt and a debt relief program</a> due to business failure, you need to know if you have what it takes to make your business become a one of a kind success.

There are several factors to consider when qualifying for a business loan.  First, your personal credit will have to be in good standings.  If you have poor or less than perfect personal credit then you will not qualify for a business loan.  So, you will want to take a look at your personal credit score before applying for a business loan.  Additionally, your personal credit will determine the interest rate you will receive and how much money you can borrow.  Another factor to consider when qualifying for a business loan is your business plan.  Before even talking to a lender you will want to have a drawn out plan for your business.  This includes where every penny you borrow is going to go, the lender will want to see what they are funding. The plan should also include what you plan to sell and who you suspect your target market to be.  Knowing your target market is extremely important when starting your own business, as these people will keep your business running.  By having a secure business plan you will be one step closer to gaining a loan.

With todays market it is no wonder it is near impossible to get a loan for a new business, but if you do your homework to determine if you qualify for a loan it will help your chances when meeting with a lender.

Monique Rowe is a guest writerthat writes for Franklin Debt Relief.

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You can get more information about building business credit at www.smallbusinessloans.com

The economy that put us in this current economy was all about moving fast.  There was no thought regarding “If I do this, what will happen?  If I do that, what will happen?”  Business owners and consumer alike were used to getting what they want, when they wanted it.  Well, we now understand what kind of solution that leads us down as far as small business success.

When you look at quantity over quality which usually means you are looking for speed, the solution is almost always the same.  You can almost guarantee that negative ramifications are going to come out of doing quick business.  This is especially true when it comes to looking for fast business loans.  Business loans are something you want to take your time with.  If you rush into small business lending without thinking through why you need the business loan, what it’s going to be used for, and how you plan on paying it back, the result could be a very bad financial spot for you as the business owner, and your business.

It’s not a matter of if you are going to need small business lending, but a matter of when you are going to need small business lending.  If you plan on growing your business the smoothest and most efficient way possible, creating a solid business credit foundation to be approved for business loans is what needs to be focused on.  Business credit cards and business lines of credit can be the backbone of your business financially.  They however need to be treated with respect and with a knowledge that they could very well hurt you and your business more than it could help it.

Here are a few tips when it comes to look for small business lending:

What Kind of Business Loan? – There are all sorts of business financing options available today.  It really all depends on how you operate your business and the kind of business you have.  If you accept credit cards from your customers, you can apply for a merchant cash advance loan.  If you have inventory sitting around, you can apply for an inventory financing loan.  If you rush this process with doing your research on the type of loan that is right for your business, you could end up in business debt that could very well be the end of your business.

Know Before You G0 – Before you walk into a bank, make sure you fully understand what it is going to take to be approved for the business loan you are looking for.  This means getting a business loan fast is out of the picture.  Do your research on what the banks are going to look for in a good quality small business borrower.  If you do not perform this research and your mind is on how fast you can get that business loan, you will most likely be declined for the loan, and on top of that, your personal credit score can be destroyed.

Perception – The last thing you want the bank to know is that you are desperate and need money right now.  This is the kind of perception you will give a commercial loan officer if you are looking for a business loan fast.  They will wonder why you are in such a hurry and more often than not, deny the opportunity to even speak with you.  Take your time, act professional, and understand that being approved for a business financing is a process.  If you understand this concept, the loan officer will take you seriously.

What has your experience been with applying for business financing?  Have you ever rushed the process?  What came out of rushing your loan request?

Business loans are tough to come by these days.  You must be prepared and have been in business long enough to where banks and lending providers think you are a good low risk customer.  The last two years business loans have been so easy to come by that it forced small business owners to become lazy with running their business.  Banks and lending institutions didn’t necessarily care about your books, or your business plan or what kind of credit score you had.  If you needed money and you could prove that you had income, you were good to go.

Currently, with the changing of the markets and loss of revenue the big banks have suffered as far as deposits from consumers losing confidence in the baning system, banks and lenders are going to want to take a good look at your business from head to toe.  They want to make sure that if they hand out any kind of money that the funds are well deserved.  Because of all the mistakes the banks made in the past, the underwriting guidelines to be approved for a small business loan are tough and strict.  The banks are going to want to see that you have what you need to prove to them you business financing solution.

Make sure you have these items researched and prepared before you apply for any kind of business financing.

Business Plan- You must make sure you have a business plan that covers your marketing strategy, current and fore-casted financials, management team resumes, exit strategy, supporting documents, and any kind of intellectual property you may have.  Your business plan pretty much expresses to the bank what you plan on doing with the banks money.

Positive Business Credit Portfolio- Banks and lenders are going to rely on your corporate foundation and its history when making a decision to approve you for a business loan or line of credit.  If you think about it, why would a bank want to pile heavy bricks onto a week foundation.  Think of the business loan as the heavy bricks and your business as the foundation.  Banks want to see a strong foundation if they are going to give out money.  They want to know that you have the capacity to pay them back.  A strong business credit asset will help them make that decision.

Proper Supporting Documents- If you have anything that will strengthen your case about being approved for a business loan then you need to bring it with you when you go apply for your loan.  These documents can be purchase orders, government contracts, etc.

If you are going to be applying for a SBA loan guaranteed by the US Small Business Administration, then you are going to need not only the items above but a very clean history of doing business.

What are some of the other items you have needed in the past when applying for a business loan?  Did you not need certain things you thought you needed?  What was your experience applying for a business loan?