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Old 6th June 2013, 04:15 AM   #11
panthervision23
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In professional banking, collateral is a must; especially for an SME business. Bankers wants to be sure they'll get their money back even if the borrower is losing revenue along the way.

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Old 8th June 2013, 08:37 AM   #12
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I said it once and will say it again - banks do not provide start up loans. Banks have to be assured that will get repaid and a start up business - without a proven business model - cannot ensure that it will repay a loan. Now, if you have other sources of income, you could get a loan to be used in your business - but, it will not be a business loan.

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Old 12th June 2013, 04:08 AM   #13
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It varies from bank to bank, whether it is providing loans for business start ups. Yes many formalities and paperwork are needed to apply for a business loan.

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Old 12th June 2013, 04:20 AM   #14
williamjames732
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Default Business startup loans

Share some of the best tips to get business start-up loans from SBA..


Last edited by williamjames732; 12th June 2013 at 04:21 AM. Reason: Some text missing
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Old 13th September 2013, 05:11 AM   #15
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Banks do have business start-up financing programs. As mentioned multiple times here, you need to put together a solid business plan. You can get detailed information on how to make one on the internet. If you know anyone who has started their own business, you can talk to them and get guidance on how to go about gathering all the correct information to present to the bank. Another option to consider, especially if you have some sort of collateral to back up your request, is to get a personal loan for a financing company or private agency. Their pay back requirements may be more flexible and suitable to your needs. Good luck!

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Old 23rd September 2013, 05:10 AM   #16
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Banks do have business start-up financing programs. As mentioned multiple times here, you need to put together a solid business plan. You can get detailed information on how to make one on the internet. If you know anyone who has started their own business, you can talk to them and get guidance on how to go about gathering all the correct information to present to the bank. Another option to consider, especially if you have some sort of collateral to back up your request, is to get a personal loan for a financing company or private agency. Their pay back requirements may be more flexible and suitable to your needs. Good luck!

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Old 24th September 2013, 08:57 AM   #17
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Yeah but it depends on what type of loan it is you are trying to get.

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Old 24th March 2016, 01:57 PM   #18
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Startup loans are very hard right now at a bank. Typically, the most important things to a bank on making a commercial loan are (in order of importance):
1) Last 2 Business Tax Returns - showing profit
2) Personal Credit Score
3) Amount of Holdings you have at that bank.
4) Net Worth - from Personal Financial Statement

A lot of people spend a lot of time on a business plan (primarily motivated by need for a loan). This matters very little.

Unfortunately, SBA loans go through banks and the same criteria are involved (1-4 listed above). SBA loans require you to have "skin in the game" regarding a portion of all the cash flow you'll need.. which is why they want you to project (pro forma) cash flow (versus P&L)

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Old 24th March 2016, 01:58 PM   #19
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I agree with your comments 100%

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Old 29th March 2016, 04:28 AM   #20
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Start up loans are difficult to get from bank with bad credit score. Due to which, it is often noticed that many have opted for first timer business loans from a private financial institute then going for Govt. owned banks.

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