Once you have thought to venture into small business the next question is from where do you get the back up to start the business Some time in your business you would definitely require loan. Be it for starting a new business or for the progress of your business. What ever be the case once you go to a lender for a loan even he has some questions before he decides to invest in the business. If you prepare for those questions you how to get a small business loan.

The first thing that you should do is preparing all our documents and be ready with all the papers that you require. The next is that you should be thorough in your mind as to what are you planning for the future of the business. If you know your concept well and the future of the business then consider that half of you work is done. If you are able to convince the lender on the success of your business then you can how to get a small business loan easily qualify for a loan.

The few things that the lender asks for include:

· A Business plan the business plan is important as it would tell the lender as to why do you want the business loan and what are your future plans

· The lender will ask you as to whether you have the capability to pay back the loan or not. The business forecast that you present to the lender helps him to decide as to whether he should invest in your business or not.

· The lender also demands for a statement that mentions your financial status. You will have to present the lender with a list of your assets and you debts.

· If you have been doing the business for quite some time then you would have filed tax returns. When you go to the lender for a loan, be sure that you show him these papers. This will help the lender decide on the basis of your payments whether he should consider your loan application.

· The credit rating report is important when you apply for a fresh loan. On this basis the lender can decide on how has your past financial situation been and how have your payments for the past loans been.

Once these documents are ready you should make yourself fully prepared with a presentation on your business. The presentation is the most crucial point that would help you how to get a small business loan.

When you apply for a loan then you should be able to tell the lender about your asset and the collateral that you can give to get the loan. A collateral is an asset that you give as a security in order to obtain the loan. If you fail to make the payment then the lender seizes this collateral.

The lender may also ask you about the money that you are willing to invest in the business. You should invest at least 20 40% of your own money in the business. The experience and the educational background also count a lot. The lender might like to know your level of experience in the field in which you wish to venture. You should be well prepared with the subject and the difficulties that you might encounter in the business.

If you have all your documents ready and your plan for the business and its development then you can easily qualify for a loan.

The banks often question you regarding the equity and whether you have the potential to pay the interest in case if your business fails. If you are applying for a loan for the expansion of your business then the bank would like to know the history of your business and how did it evolve. If you have had a good past in the business then the lender considers that your business will have a good future also.

At time the lender may also enquire abut the staff. The people who manage the business play a major role in predicting the future of the business. It is always better to have documents prepared about your managers and their history also.

The lenders when they ask you about the past of your business then they would even consider how have the sales growth been. It is very important to show the growth of a small business when you are applying for the loan. The lender would also like to know whether there are any future prospects of the business or not.

There are many tailor made loans available these days and you can get a loan for almost any possible thing. Basically there are two types of loans that are available. The secured loans and the unsecured loans. The secured loans are given against a collateral, which serves as a security and it can be obtained at a comparatively lower rate of interest. The only disadvantage with a secured loan is that if you fail to make a payment then your collateral is seized by the lender. The unsecured loan does not require any collateral but you will have to pay a higher rate of interest.

There are many lenders and loan institutions in the market from where you how to get a small business loan. The only thing that you have to consider is getting the right price. You will need to contact a few lenders and compare the prices that they have to offer. Later you can decide and apply for the loan that suits you the best.