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Small Business Loan
If you are a business owner, been in business or tried to start a business, you know that it's very difficult to obtain a business loan. It is actually easier to finance a $50,000 car (which will not make any money for you) than to get a $50,000 small business loan. Over 92% of entrpreneurs do not qualify for a small business loan of any size, including the Small Business Administration (SBA) Guarantee Loan Program.(Source: SBA)
Matter-of-fact, most banks will not consider providing a small business loan if you;
are in business less than 2 years
had credit problems, low credit score or no credit
do not have enough collateral to cover loan
need under $100,000
Even if you qualify, you must provide the following minimum to be considered;
A comprehensive business plan
Audited Tax Returns for 2-3 years
Detailed Financial Statements
Personal Guarantee regardless of legal entity
Pay an application fee and closing costs
As a small business owner, I have successfully borrowed money from the bank at a high price. It cost me a friendship, (family friend who co-signed loan), which I paid back but the stress on paying back the loan using someone else credit ruin the relationship. The second time I borrowed money from the bank, it cost me my home as collateral and ruin my relationship with my wife when I couldn't pay it back. What I learned is most people never successfully received a small business loan from any bank, even with good credit. However, if you ever need money, there is an alternative financial source without co-signers or putting your home as collateral.
Goto the next page for more information about Business Cash Advances.
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