The dream of starting your own business requires a lot more than just a good idea. There are plenty of people with have good ideas; what you need is capital. Of course it’s hard to reach into your wallet and pull out all the money you need to make your dream a reality. What you need to satisfy your dream is a loan. Getting one is easier said than done, but let’s take a look at ways to help secure it.
It seems simple enough, but the number of people who go into a bank without a solid business plan are growing in number. Think about it: would you give money to someone who sort of knew what they wanted? Probably not. What you need is a solid written business proposal and projections on how that business is going to make money. Without that you can forget about getting a loan.
This isn’t rocket science. If you don’t have good credit, nobody’s giving you money. You have to be able to show the loan office you can be trusted with a large amount of money. Without that you are grasping at straws. Sure, there are places like Plain Green Loans that will be happy to help you without credit, but if you need a larger sum of money — or don’t want to get killed by interest rates — you’ll need better credit.
Remember, how you look matters. If you walk in looking less than professional or talking less than professionally, you’ll be treated as such. Don’t be naïve in thinking these banks are going to be swayed by your passion. They want to feel secure about the money they are lending. Make them as comfortable as possible.