| Business loans can be defined as money lent | | | | 3.) Having a good business plan with |
| for a specified amount of time at a specific | | | | potential earnings, letters of intent, and |
| interest rate to a specific person or people | | | | any type of customer contracts already laid |
| that operate a business or plan to operate a | | | | out. |
| business. This definition is very broad, but | | | | |
| so are the various types of loans available | | | | All of these types of endeavors can help in |
| to business people. Deciding on which type of | | | | receiving a business loan. Often times, |
| business loan that you and your company will | | | | financial institutions require in-depth |
| benefit from the most is very important. | | | | business plans, be prepared to spend days |
| Often times, a start-up business or someone | | | | working on just the certification paperwork |
| that has never owned a business will find | | | | prior to applying for a business loan. A |
| themselves more or less applying for a | | | | business only loan can be obtained in the |
| "personal" loan. This can be a very risky | | | | business name without use of personal credit |
| endeavor, mixing business loans with personal | | | | as long as the business can justify the loan |
| loans, however, often times it is the only | | | | amount and the ability to pay it back. |
| available means for first time business | | | | |
| owners. | | | | There are several different types of business |
| | | | loans available, ranging from those secured |
| One of the first things personal business | | | | with collateral, non-secure loans, which are |
| owners need to do is establish business | | | | based upon the credit worthiness of the |
| credit. Business credit can help you get a | | | | applicant, and even government loans for |
| business only loan without using your | | | | small business ventures, women and |
| personal credit. Establishing business credit | | | | minorities. Government loans are those loans |
| can be done by: | | | | secured by the government; in most instances |
| | | | these loans are available when the business |
| 1.) Opening up a business credit card account | | | | or owner can prove that the community will |
| and paying it in full. | | | | prosper based upon the business at hand. For |
| | | | the most part, government loans are based |
| 2.) Buying equipment and supplies from | | | | upon personal credit. |
| companies that will report good standing to | | | | |
| the business credit bureaus. | | | | The basis for which you may need or require a |
| | | | business loan may vary. |