Know Where To Look And You Could Get The Cash You Need To Live Your Business Dream

Online, June 30, 2011 (Newswire.com) - Business loans for new businesses can be obtained by applying at banks or credit unions. But there are a lot of other sources as well. Although there are a ton of other sources from which to obtain a business loan, many entrepreneurs don't really know where to look.

Some private lenders include nonprofit companies that cater their lending to women and minorities. Whiles this isn't always the case, a business owned by a woman or minority may have an easier time obtaining a business loan from a private lender if they have been turned down by a traditional lender.

In order to stand a chance when it comes to getting that business loan, an entrepreneur must have a proposal, and the proposal must be original. It must also describe for the potential lender what the business is, how it will succeed, and how the business will be able to provide enough profit to repay the loan. New business start up loans are more difficult to obtain for startups than for a franchise.

An entrepreneur seeking a business loan should have at least a 10 percent down payment for the amount he would like to borrow. Having less than 10 percent as a down payment will more than likely mean you'll be turned down for the loan. Many banks recommend that business owners take out a home equity loan in order to obtain the down payment.

Once the business loan has been granted, it is up to the borrower to make sure the repayment requirements are met. Often times, this means putting up some collateral. If you don't have any collateral to put up for the loan, it would be unwise to borrow.

Make sure that you have a solid business plan in place as well, written in detail. Be prepared to provide a copy of this plan to the lender at the time of application. The plan should include your proposal.

Then apply for your loan. If all your ducks are in a row, you should find yourself sitting pretty.