| You want to get a good, solid overview of what it | | | | "Do you have any assets that can be pledged against |
| takes to acquire that business loan you need, | | | | this loan in case of a default?"Him: "Default?! Good |
| especially if you are a startup. The essential element | | | | grief, man. Can't you tell by looking at me that I'm a |
| of what the lenders out there require of you can be | | | | man of my word?!"You: No.At this point, he leaves |
| wrapped up in the acronym, C. C. C. These are...Cash - | | | | your presence discouraged, fuming, or both. No one in |
| Decide how much money you want to borrow, what it | | | | his right mind would fund such a proposal at face |
| will be used for specifically, and how much you | | | | value. On the other hand, if that same man came to |
| personally will put down on the loan. The more cash | | | | you (and you were in the business of lending money), |
| you can come up with the better, period.Credit - Your | | | | laid out a sensible business idea, put up 20% of the |
| personal credit score really should be 700 or better. | | | | loan amount in cash, had good credit, had experience |
| Unless you've got tons of cash and collateral, don't | | | | either at running a business or in the industry he was |
| even attempt a loan request until it is. Personal credit | | | | proposing, and had a sufficient amount of collateral to |
| reports can often be obtained free and securely over | | | | cover losses due to unforeseen circumstances, you |
| the internet.Collateral - The more collateral the better. | | | | might consider him a "good risk", wouldn't you?All |
| The lender will establish a loan-to-value on all of it. | | | | lenders have the difficult task of making future |
| Having a house to pledge is a huge plus. Keep in mind, | | | | decisions based on historical information. Commercial |
| though, that little or no cash and lousy credit will not be | | | | or private lenders such as commercial finance |
| made up for by an excess of collateral.You must | | | | companies, leasing companies and mortgage banks, |
| decide how much money you need and how much | | | | though not directly regulated by the government, still |
| you can raise for a down payment. You must get | | | | must adhere to certain credit granting criteria. |
| working to make that credit score of yours better. | | | | Institutional lenders such as banks, credit unions, savings |
| You know how many assets you have, and should | | | | and loans, etc., lend money obtained by borrowing |
| find out what their liquidation value is. You need to | | | | from their depositors. Thus, they are both regulated by |
| discover how to get your hands on additional cash and | | | | the government and more critical in their policies |
| collateral should the need arise...Still with me? Good. If | | | | regarding lending. Regardless of whether you |
| you are serious about starting or enhancing your | | | | approach one or the other, neither one of them are in |
| business through a loan, you need to understand that | | | | the business to lose money. Give them reasons to |
| lenders will want to know how much skin you have in | | | | lend to you. Did you know that lenders want to provide |
| the game. After looking into a loan possibility, many | | | | money to you? Let them!By preparing your personal |
| aspiring and existing entrepreneurs conclude that the | | | | three C's properly for the scrutiny they will endure, |
| money lending industry is too demanding and complex, | | | | you'll give the funder a good opportunity to fulfill your |
| and the sheer volume of information required by them | | | | request for business startup capital. There are many |
| is overwhelming. Then, discouragement sets in and | | | | other details involved in the process, such as the |
| drains all the excitement and enthusiasm out of | | | | sizeable amount of paperwork you need to prepare |
| them.But perhaps it's prudent to think from the lender's | | | | and gather. But, if you're serious and confident about |
| perspective for a moment. Imagine a stranger | | | | your venture, pony up and be willing to hurdle the |
| approaches you, nicely dressed and polite, and | | | | necessary fences to satisfy the lender's requirements. |
| proceeds to enlighten you on his idea to build a lovely | | | | At that point, an independent loan broker will be one of |
| espresso stand just down the street from your house. | | | | your most valuable allies. Contact a professional who |
| His vision of the success of this venture is optomistic, | | | | can walk with you through the process and explain the |
| he apparently has a little experience at running coffee | | | | details of the transaction. Your chances for approval |
| joints, and is now inquiring if you would like to fund the | | | | will become greater and your lender will thank you.In |
| construction and initial operation of this hopeful | | | | part 2 of this article, we will examine the types of |
| enterprise.So, naturally you begin to be a little | | | | paperwork necessary to package a startup loan |
| inquisitive...You: "How much cash will you have on the | | | | request to the lender.Mark Uptain is the owner of |
| line for this project?"Him: "Cash?"You: "Yeah, you | | | | Regent Business Capital, a loan and lease brokerage |
| know..., money? And, since I'm asking, how's your | | | | that works with lenders nationwide to help small and |
| credit? Have you been making all of the payments to | | | | medium-sized businesses get financing. His website |
| your creditors on time?"He begins to squirm.Him: "Well..., | | | | offers free equipment leasing information and |
| about the money thing, I wouldn't be coming to you if I | | | | competitive quotes to businesses throughout the |
| had any of my own. And, as far as my credit is | | | | United States. |
| concerned, it's happens to be pretty good...I think."You: | | | | |