How to Get A Small Business Loan
How to Get A Small Business Loan
Getting a business loan is not as simple as walking into a bank and asking for a loan. Although you can apply for a number of loans through your bank, there are several government programs that you should also explore. Check out the Government of Canada’s Small Business Financing Program for more information. A well planned loan proposal is the first step in the right direction in getting the business loan you need. There are many aspects of a loan proposal that you will need to consider and prepare for, doing this will ensure that you showcase your company in the best way possible to the banker, increasing your chances of being successful in gaining your financing.
Key documents needed for a successful business loan:
Business Plan
Having a solid business plan helps set the stage for your entire application and supporting documents. By having a great business plan, you will not only increase your chances of being successful in attaining financing, but it will help keep you focused on your business goals, while setting the stage for your business success.
If you don’t yet have a great Business Plan, we suggest you read our recent article on Small Business Planning, which will help guide you (while providing resources) during your planning process.
Supporting Documentation
By having the following supporting documentation ready to include with your loan proposal, you can enhance the credibility of your business while also demonstrating its viability.
- Financial Statements
- Cash Flow Projections
- Management Team Resumes/Experiences – Showing You Have the Expertise Required
- Client Testimonials
When writing a small business loan proposal it’s important that you keep everything as simple as possible, while avoiding technical terms and acronyms that might be common in your industry. Remember, the intention of the proposal is to show how great your business is and how it will continue to grow and succeed; sell yourself!