How to get a business start up loan

If you're thinking about starting your own business, you are probably going to have to have some outside financing.Friends and family can offer their help, but if you're in need of more money, you will need to obtain a start up loan.At times these can be difficult to come by, depending on what type of business you are planning on starting. Finding business start up money is crucial because there's no guarantee that you'll start making money right away.The first thing you will need is start-up capital.This is the total amount of money needed to open the doors of business, and to keep them open until you are making enough income to support yourself.You will also need operating capital, which is the amount of money it will take to keep your business running.You have some different options when it comes to getting money to start up your business.About half of business owners borrow from financial institutions such as banks.A smaller portion get of first time business owners get their money through private loans such as friends, or family.And an even smaller portion of business owners get their start up loan money by using their own personal credit.

Let's take a look at what the majority of people are using today to get a business start up loan; Going to the Bank.Since most small business fail within the first few years, most banks require a lot.. From their perspective, you are a greater risk to them because it is a "start up" business, and you most likely do not have a long operating history.In order to prove to them that you are worth the money, you will need to prepare some extensive documentation.

• Personal Credit History.Your personal credit history is extremely relevant to your business start up loan.You can bet that a bank will assume that you will manage your business as well has you manage your finances.This is why it's so important to have good credit.Make sure your bring documentation of your credit history with you when you go to apply for your loan.
• Financial Statements.A bank will want to know how much your business is worth, and how much money you plan to be making.You will want to show them a detailed plan of what you plan to do with your business as it moves forward into the future.
• A full proof business plan.Every small business owner looking for some start up money needs to have an updated business plan. Before preparing your plan, survey the market and check out the possible risks your business will face.As you learn more about the risks, be prepared to provide some solutions to those risks.Your business plan will also need to include financial statements, credit reports, pro-formas, etc.Banks will more likely give you a small business loan if you have everything prepared and organized for them.Details are the key.Include information about yourself and anyone else, who will be part of the business, strategies you plan to use in the success of your business, and much more.You might also want to have with you a list of personal assets, personal tax details, and income details.

Grant Programs
Another option for getting a business start up loan is government grant programs.The benefit to these programs is that you don't ever have to pay them back.They can be hard to come by though, and usually require extensive research on your part.Due to the fact that there are so many grants out there, you need to make yourself familiar with the how-to's of government grants in order to find that specific one that will meet your needs.Grants.gov is a great site and will give you listings of all available government grants.Here are some steps to follow in applying for government grants:

1. Find the grant that meets the needs of your business.As said above, there are so many grants that in order for your application to be processed you need to find the right one.If it does not meet your business needs, your application could be rejected.
2. Download or call to have the application package sent to you.Downloading the package will definitely speed things up, but if you do not access to the internet you can call and have one sent to you.
3. Register with Central Contractor Registry and Grants.gov.In order for them to process your application electronically you will need to do this.

Grants.gov offers a very user friendly website.It has support tools, instructions for applying, a user guide, and much more.If you're looking to apply for a government grant be sure to go to this site for more information.

Although finding a business start up loan may take some time and effort on your part, it could be well worth it in the end.The less money you have to fork out of your pocket when starting a business the better.