subject: Business Loans: Getting The Best Deal [print this page] Business Loans: Getting The Best Deal Business Loans: Getting The Best Deal
If you have good credit, obviously, you are going to be able to get a better deal. If you have time to build up your credit so it is the best it can possibly be, that would be ideal since the better your credit, the better of a deal you will be able to get (a lower interest rate), not to mention your chances of even qualifying will be higher, especially if it is a very large amount of money.
Once you have built up your credit, compare between secured business loans and unsecured business loans. Usually, secured business loans will have lower interest rates, but you must have assets that are valued at the same amount as the loan amount you are asking for. With an unsecured business loan, they will only have your legal word that you will pay back the loan amount, so you may need to impress them a little more with your business plans to help ensure them that you will be able to pay back the loan.
Having a good business plan is therefore very important before seeing lenders about borrowing money. Lenders will also want to know what you plan on doing with the money, projections of how much money you expect the business to make, (they may ask for a business growth chart), and what you will do if you do not get the loan. They want to see that you are serious, that you believe the business really will work, and most importantly, that you are the type of person that will not give up, that you will keep trying until you succeed. The more they think your business will succeed, not only will they be more likely to give you the loan, but chances are you will get a lower interest rate as well.
