New Businesses

New business owners often need to find a source of funding in order to start their business.  Usually that funding comes from a business loan.  (Most businesses do not qualify for grants, unless they are a non-profit or serve disadvantaged groups.)  Lenders will ask for a business plan, which shows when the business should start turning a profit and how it can pay back the loan.  Follow the SCWBC’s proven four step plan to starting a business and learning how to write a business plan.  Once the business plan is written, your business coach will continue to work with you to prepare your loan application and find a lender.

Expansions

When an existing business wants to expand, it is usually in the same position of approaching lenders and needing a business plan that details the expansion plans.  In this case, the business plan is written in the context of a business that is already open and shows how the new loan would be spent, what new sales are anticipated, and how the loan would be repaid.  Depending on the nature of the expansion, a complete business plan may not be needed.  Request a consultation with a business coach, who can help you prepare your application and find a lender.

Qualifying for Loans

There are some key points that lenders look for when deciding whether to grant you a business loan.  For more information, see Fund a Business – Qualify for Business Loans.

You should have these documents prepared when asking for a loan:

• Business plan, including Sources and Uses of Funds, Cash Flow Analysis, and Profit and Loss Statement
• Personal financial statement showing assets, debts, and total net worth
• 3 years of personal tax returns
• Documents proving possession of collateral
• Resumes of each partner with a stake of 20% or more
• Copy of incorporation papers (if applicable)

Getting Started

If you are starting a new business, follow our proven four step plan
If you are expanding a business, request a consultation with a business coach.