Applying for commercial loan requires accurate projections

One of the most confusing aspects of running a small business is applying for a commercial loan.

Many business owners wait until there is a financial emergency before securing adequate funds. Position yourself in a manner that minimizes these emergency situations. Commercial lenders want to make loans to businesses that are solvent, profitable and growing.

The most important document you must prepare is a written loan proposal. A well thought out proposal will show the lender that you are prepared and ready to talk business.

The bank may approve your business loan subject to a U.S. Small Business Administration (SBA) guaranty. If…