How to File for a Business Loan

How to File for a Business Loan

Determine the amount of loan you need and what you will use the money for.

Decide on the type of loan you want and whether you want to obtain it from a bank, the Small Business Administration or another type of lender.

Develop a balance sheet indicating the status of the company's assets, liabilities and equity.

Develop a profit-and-loss statement with a summary covering the company's expenses, revenues and costs for a particular accounting period.

Develop cash flow projections by estimating the time frame in which you expect money to flow in and out of the company.

Contact prospective lenders and ask them for an application. In many cases, the quickest way to accomplish this is in person, although it can also be done via e-mail, fax or mail.
Correct tip: Contact your local office of the U.S. Small Business Administration (www.sba.gov) to determine which local lending institutions participate in the access to capital program. If they work with the SBA, and you meet the qualifications, SBA can offer you a loan guarantee which makes it easier for a bank to lend you money.