Sarah Brooks

Sarah Brooks is a freelance writer living in Charlotte, NC. She writes on a variety of topics including small businesses, social media and personal finance.

Sarah Brooks has written 27 articles for SB Informer.
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Sign Off on the Best Home Business Loan

Sarah Brooks

January 15, 2015

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Small businesses account for the majority of all businesses in the United States.

In 2011, there were more than 28 million small businesses. On average, 10 to 12 percent open each year and 10 to 12 percent close, according to the US Census Bureau.

There can be many reasons for wanting to start your own small business, including being your own boss, being in control of your income and having the option to set your own hours and/or work from home. While some businesses don't have any start-up costs, the majority of them do.

Whether you need to pay for equipment, product, materials or labor, you may need to pay for expenses before getting started.

This is where it could be helpful to rely on a small business loan to get you up and running.

Find the best home or auto loan in your area in order to get your business off the ground.

While acquiring a loan for a business is a bit trickier now with more stringent guidelines, many people are still relying on loans to get started.


How to get a small business loan

You'll want to check with local banks and credit unions before making a decision.

Do your research and talk to a variety of lenders to ensure you get the best loan for the best interest rate. Read all the fine print and understand the terms fully before signing.

Among the things to do:

  • Be prepared - Banks will need to know why you want the loan, they'll want to see a good credit history and they'll want to know how you plan on paying back the loan. They'll need all your personal information, such as your driver's license and social security number, plus they'll want to see a detailed business plan that includes how much money you hope to make in the first year. The more prepared you are, the better chance you have at securing the loan.
  • Always provide the necessary documentation - Did you know that many applications are denied simply because all of the necessary information was not provided? Provide everything the bank asks for and more to help ensure you get the loan.
  • Be honest - The bank or lender is going to want to know why you need the money for this business. Be honest with them. Do you plan on hiring employees right away? Do you need to buy product and materials? Perhaps it's for a combination of both, but let the bank know in detail what the money is going to be used for.
  • Consider other options - If for some reason you are not approved for a small business loan, don't fret. You may need to change your timeline a bit, but you can still open up your business in due time. You could consider working for someone else for another year or two while you save money, you could take out a home equity line of credit or you could ask a trusted family member to lend you the money. If the bank says no, that doesn't mean your business is done before it even got started.


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