If you are working on starting your own small business, one of the biggest issues you are most likely facing is financing. Regardless of what kind of business you are starting, it takes money to make the transition from a dream to an actual business. Although there are different ways to obtain funds for your new business venture (such as angel investors or venture capitalist financing), at one point or another, the majority of small businesses requirea loan from a bank to keep them alive and growing.
In a perfect world, any small business owner with a great idea and strong work ethic would be able to obtain a loan to help their business. Unfortunately, the reality is that it takes more than these two elements for a small business to receive a loan. Because banks are always concerned about minimizing the amount of risk involved in making a loan (especially given the current economic climate), they take multiple factors into account when they are determining whether or not to approve a loan for a small business owner.
Read the rest of this entry »