SMALL BUSINESS START UP LOANS PROPOSAL

2007-04-17 04:46:40

( Business )



Small Business Association

Small Business Association provides information on how the procedures to follow in availing small business start up loans. It states that small businesses must submit a proposal when they avail of small businesses start up loans. Address, name of company, social security numbers, and the names of the persons involved in the business ventures is submitted along with the contents of the proposal.

Business and Financial Proposal

The proposal main content must describe the business, its history, organizational structure and profile of management. Also, information on its market is necessary to show potential financing companies the sustainability of the business in terms of market outreach. The market description includes the products and services that the loan will finance as well as the description on its competition. The company must outline its market strategy to show how it will compete with other companies selling the same products and services.

The proposal also includes data on finance such as projected balance sheet, cash flow and income statements. It will show lenders the ability of the business to earn profits at longer period and pay off its loan. The financial aspect also includes a proposal on what type of assets the company and its owners will offer to back up their small business start up loans.

Term Loans

Lenders usually provide term loans for small business start up loans. Payment of term loans is within shorter periods of one year to longer periods of ten years. Acquisition of assets and working capital loans are the main objectives of term loans. Collateral is required to finance term loans.

Term loans charged fixed interest rate which means that borrowers have to pay it irregardless of the financial situations of their businesses. Lenders for delinquent payments impose penalties. Amortizations are paid semi annually and sometimes monthly in equal amounts.

Small business lenders are sprouting in the market nowadays. Small business owners should gather enough information on the start up loan products of these lenders before deciding which one to borrow. Search as must as you can and prepare a well written and accurate business proposal.


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