{"id":5541,"date":"2016-04-04T10:48:01","date_gmt":"2016-04-04T15:48:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/tips-for-business-loans.html"},"modified":"2026-05-12T09:35:00","modified_gmt":"2026-05-12T14:35:00","slug":"tips-for-business-loans","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/tips-for-business-loans.html","title":{"rendered":"Tips For Business Loans"},"content":{"rendered":"\n
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Tips For Business Loans<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Small business loans<\/span> are used by business owners for startup<\/span> financing or continuing operations of an existing business<\/span>. There are several steps you can take to put together a comprehensive business loan proposal to present to lenders<\/span>.<\/p>\n\n <\/div>\n\n\n\n

Securing small business financing<\/span> is one of the first things a new business owner<\/span> needs to consider. Financing the startup<\/span> phase<\/a> is important for your success. Although a potential lender<\/span> may want to see how the business can repay them, business loan applications<\/span> sometimes require a personal guarantee .<\/p>\n

This FindLaw article provides tips for getting a small business loan<\/span> for a startup<\/span> business.<\/p>\n

We make business formation EASY. <\/em><\/strong>Learn about our DIY business formation services here<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n

Prepare a Business Plan<\/span> Before You Apply<\/h2>\n

Put together all the information needed for your application. This includes your business plan<\/span> , business tax returns<\/span> , and personal tax returns<\/span> . A well-developed business plan<\/span> <\/a> helps you understand how much money you need and the types of small business loans<\/span> <\/a> you can secure.<\/p>\n

Your business plan<\/span> should identify:<\/p>\n

With this information, you can decide what financing your business needs<\/span> . It also helps you decide whether to submit your loan application<\/span> now or later.<\/p>\n

You may need six to 24 months of business experience and a cash flow<\/span> analysis before qualifying to apply for some business loans. That may mean personal borrowing to start your business until you\u2019ve got enough documents under the existing business . These documents include financial statements<\/span> to show your business is viable.<\/p>\n

Check Your Personal <\/span>Credit<\/span> Score<\/span> Before Applying for a Small Business Loan<\/span><\/h2>\n

In the months when a business is too new to qualify for traditional business loans<\/span>, many business owners<\/span> turn to:<\/p>\n