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