Home Business Loans Can Be More Difficult To Get - But Do-Able

Online, January 25, 2011 (Newswire.com) - So you've decided to start your own home business. You've got a great idea, you've set up your home office, and you're raring to go. Now you just need some startup money.

Securing a loan for a home business is possible, although it may be a little more difficult than obtaining small business loans for a regular business. Securing the loan requires the same work for a home business as any other business. You still need to put down on paper your business plan, and come up with a cash flow statement.

For women, it may also be necessary to obtain a collateral-based loan, meaning something tangible is put up as security, such as a vehicle or home. To obtain an unsecured, or signature loan, requires excellent credit history and credit score, and a long-standing relationship with the lender.

There are several ways to o about securing a loan for a home business. You can go through traditional bank lending, or to loan specialty agencies. There's always friends and family, or you could sell some of your belongings to get the cash you need. You may also consider fast cash loan stores or Web sites. These lenders can offer you money fast, but you'll pay a fee, as well as a higher interest rate.

The method you choose will depend on the amount of money needed. For small amounts, under $500, you can sell items, borrow from friends or family, or get a cash loan. For larger amounts, there are loan vendors and banks or credit unions. You can also get a large amount loan from the Small Business Administration.

To prepare for application for a loan, you'll need to compose a business plan, and assemble all of your financial information, including previous tax returns, assets and other personal financials.

Once you've got a solid plan, hit the lenders. And get your home business off the ground.