Let’s say you’ve decided to go for it and take out a small business loan. How do you go about it? Do you just jump into the water and take the offer that first comes along? While this might sound like a good idea, especially if you really really need the cash and you are having a hard time finding it. However, it makes better sense to take your time and make sure that you have chosen the right lender for your business.
Before you approach a lender – any lender – it is a good idea to have a written cover letter. In this letter, you can share your business, its background, its mission, and the reason for your loan. This letter can be helpful as you approach different lenders, and sums up your business easily.
So you have your cover letter, which lenders should you approach? The idea is to find a lender that is stable, has experience, and has real people to tend after your needs. A lender or bank should be stable enough in the small business sector. What you want is a bank that has a proven record of lending to small businesses – this will help save time. More so, it is important that the lender show a personal side to the business. That is, their personnel should have the time and patience to actually sit you down and discuss your business with you. This will show you that the lender actually cares for its borrowers, making your chances of getting a loan higher.
Originally posted on February 9, 2011 @ 8:53 am