In today’s economy, acquiring debt capital can be a frustrating and intense process. Although the Federal Government (through the Federal Reserve) has made strides to improve the US economic climate, statistics still show that small businesses looking for business loan are having some level of difficulty. This has been compounded by the fact that despite the recent influx of capital into commercial banks from the government – financial institutions are still wary about granting business loans and credit to small businesses. This is even true of highly profitable small and medium sized businesses that are seeking to obtain credit for business expansion purposes. Normalized lending to startup, small, and medium sized businesses is not expected to return until early to mid 2011.


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Within the United States, there are approximately 8,000 banks and financial institutions that that provide business loans to small, medium, and large companies throughout the country. With the advent of the internet, it has now become much easier to obtain a business loan or credit facility than it was several years ago. The information related to your business loan request can be sent to thousands of lenders instantly so that they can decide whether or not you are a good credit risk.

 

There are a number of benefits to obtaining a business loan including the ability to amplify your return on equity. Additionally, a well structured and affordable business loan can give you the capital you need to launch your new business venture or expand your existing and profitable business. You can also use proceeds from debt instruments to acquire businesses that are existing, have an established operating history, and are profitable.

 

When approaching a potential bank, finance company, or lending source for a business loan – it is of the utmost importance that you have a well developed and economically viable business plan. This will ensure that the financial institution can see the risks related to your business, your ability to repay the loan, and what collateral can be used for liquidation if things do not go as planned.

As we will discuss thoroughly throughout this website, you may want to enlist the assistance of a Certified Public Accountant, business planning specialist, SBA loan broker, SBA loan advisor, or commercial loan brokerage firm that can tremendously help you as you progress through the process of obtaining business financing and developing your business venture.


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