BUSINESS LOAN IN UNITED STATES

                               BUSINESS LOAN IN UNITED STATES

                                                                               

Business Loan in USA

                                                                 






Starting a new business is never easy, and unless you are wealthy, you will need some money before you start trading. If you are not fortunate enough to borrow from family members or friends to start your business, you need to borrow from a bank or other lender money.
You can fund your business only using your personal credit card, at least to some degree. Credit cards, personal loans and lines of credit on real estate are all different ways to start a new business. However, depending on your credit history, your personal income and assets, the chances of getting a personal loan are limited. Also, if your business were to fail, it would be risking the loss of substantial personal assets, such as your home, if you use those assets to secure a loan.
The other option to finance the startup of a business is seeking a business loan or a business loan, which differs greatly from personal credit. Loans for short-term business, which typically must be paid within one year, are a common source of seed money while having your business begins to set, or when you need a cash flow relatively quickly. You can also borrow medium term, usually ranging from one to three years, and long-term loans, which are reserved for major capital investments and improvements. A long-term loan, unlike the short term, should generally be covered through monthly or quarterly installments. Finally, you can also request a credit line, which gives you the freedom to borrow only when needed, up to certain limits without having to borrow.
When you apply for a business loan, you must provide the bank or lender, more information than if you simply have to deliver requested a personal credit. In particular, need to devote some time to develop a very specific business plan that shows the reason why you need the loan, how much money you'll need, how long you need to return it, and how you pay. In your plan, you should describe your business, how to display it in operation, and qualifications to start this business. You will also develop a detailed budget and provide any documentation on the assets in which it is sustained and the equity you already dedicated to your business, coupled with a financial statement of their personal situation. Typically, the bank or lender will require you to personally guarantee the loan, and even may require you to obtain an endorsement or a government guarantee, such as that available in the Administration of Small Business of the EU.
Once you have requested a trade credit, bank and / or the lender has 30 days within which to decide on their application. However, often it is more difficult to obtain credit than you might think. Since many small businesses have failed lately, banks and / or lenders may exercise caution before extending trade credit. However, if you are denied a business loan, should not be discouraged; the bank or the lender must give the specific reason why he was denied, so maybe you can redesign your business plan and later return to claim the credit.