More than likely, a financial institution will become involved in your business equation. Loans are one of the most common sources of funding a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan you need to have a good idea of what to expect. It's important to understand as much as you can about the factors the bank will evaluate when it considers making you a loan. If you are considering a small business loan, these are some key points your banker will review.
All loans start with an application.
From the information gathered on this form, your process is underway. One of the first things a bank looks at is your credit history. It's a good idea to find out before you begin your business quest. This factor alone can stall or defeat your intentions. Also, the ability to repay must be justified in your loan package.