Banks have been a friend to small businesses for a long time, and that has not changed.
Banks are in the business of lending money, and if you have a good idea, a sound plan and decent credit, you stand a good chance of being able to secure financing for your startup through your local bank.
The primary way that banks make money is to have the funds that they have on deposit working for them, and financing small business is a definite part of that portfolio.
Bank loans require much more in the way of documentation, projections, and references.
Depending on your credit history, and the amount of money you are seeking, there will likely be collateral required.
A good, informative business plan will be needed, and you can be sure that the type of business you are planning to start will be scrutinized quite closely.
Certain businesses will find funds harder to get than others, as some businesses (such as restaurants) have a high failure rate, and those type of plans need careful vetting.
That said, if you have good credit, some assets, a great plan and idea, there is no reason why you can't get a bank loan, particularly if you've had a relationship with them for awhile.
They know you, and your record with them counts for something.
Also, if you have the above criteria, you may want to explore SBA Loans, as they are designed for this very purpose, and the money is available to those who can qualify.
Most startups can't or don't want to pursue bank financing, as their needs may be too small to get a bank's interest.
Just know that if you do need one, a bank loan isn't an impossible task!
A slightly different tack would be to apply for a personal loan from your bank.
If your needs are modest, (say under $10,000), you have good credit, and you have a long and good history with your bank, you will very likely be able to get a personal loan with little difficulty.
It's definitely worth looking into!
What's Next
Next In This Guide
Part 7:
How To Use Personal Loans To Finance Your Business - Personal Loans Must Be Handled With Care. They Often End Up Bad For The Relationship, So Take Care When Dealing With Friends, Family and Money.
Previous In This guide
Part 5:
Your Business Financing Options - 11 Ways To Finance Your New Business. Making The Right One Work Will Affect Your Startup Success.
Table of Contents
Small Business Financing: Get The Loan You Need To Get Started - Table of Contents
