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First Time Business Loan

A first time business loan presents unique challenges.

A first time small business loan means acquiring a whole new set of skills -- skills that will set you apart as a successful entrepreneur.  Most importantly, first time small business loans require strong promotional skills:  promoting yourself, and promoting your business.

Promoting Yourself In A First Time Business Loan

Because you are the most vital part of the process you will come under personal scrutiny from any lending institution you approach for first time small business loans.



First, check your personal credit.  This sounds elementary, but it is an easy step to skip. You do need to get your credit report from all three leading credit reporting agencies (Equifax, Experian, and TransUnion).  Read it.  Fix any errors.  Make it as spiffy as possible.

Start putting together your biographical summary for your business plan.  This is your BIG sales job.  List your accomplishments as succinctly as possible.  Trumpet your successes.  Note how you have learned from your failures.  This is not a paragraph, and it is not a resume.  It is a sales presentation on your ability to run the business.  Take time to do it right.

Promoting Your Business Concept In A First Time Business Loan

Here is where a really strong business plan comes in.  There is a lot that goes into a business plan, especially one for a first time small business loan, such as

• Defining your market;
• Demonstrating your expertise in the industry;
• Spotlighting the people who will work with you;
• Capturing the dynamic of your business;
• Outlining the financial aspects of your business;
• Showing how your lender will make money, and how the loan is secured.

There is a lot that goes into a strong business plan for a first time small business loan.

The Real Key To Success For a First Time Business Loan

There are two types of first time business loans:  those that are for start up businesses, and those that are for established businesses.   The ones for established businesses have a MUCH easier time of it.

So give your business as much longevity, and as much success, as you can muster.  Show the path from the idea inception through the development of the company and the initial sales.  Show how you invested your own money, and how you are now getting a return on that investment.  Show how others have seen the potential of this business and are now willing to join your team.

This is not an idea you are presenting, but a full blown, growing business that needs a particular type of financing.  The more you believe it, the easier the loan will be.

Finding The Lender/Investor For Your First Time Business Loan

All banks and investment groups are NOT created equal.  Some focus on large, impressive businesses; some focus on particular industry groups; some focus on local businesses; some focus on innovative new businesses. 

Find the group that suits your business.  In fact, find several groups that suit your business.  Present your business plan to all of them.  Three of them may not be interested, but the fourth could well be right up your alley.

If yours is truly a start up business, angel investors are a more likely group than banks.  Angel groups are more adept at accepting risk and may be able to offer your company key start up assistance.

The bottom line is if you want to be your own boss, you are going to have to do some work to obtain that first time small business loan- but, in this case, the ends will justify the stress.

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