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If you are starting a new business, you will probably want to learn, first and foremost, how to secure a business loan. Getting your first business loan is never an easy task. In today’s tight credit market, lending agencies are not quite as excited about the prospect of lending to businesses that don’t yet show a strong history and high profit margins. Luckily, there are other options available, so you will have little difficulty getting financing if you have an idea of where to look.
First things first, avoid large banks. Going to large banks is a waste of time for small businesses. Wachovia, Bank of America, Citigroup and their ilk want little to do with businesses that are not yet well-established, and their representatives are both too uninvolved in the decision-making and too restricted by the banks’ rules to hear your sales pitch. A better method for how to secure a business loan would be to check out smaller banks and credit unions. You will be much more likely to be received by someone that has a good bit of authority in the loan transactions, and you may be successful.
You may also want to consider getting an SBA loan. The SBA has helped a number of small businesses run by veterans, women, minorities and and others with start up businesses. They are the nation’s single largest guarantor of business loans and currently have a portfolio of $45 billion. They have also recently received aid from the federal government through the recent stimulus package. Check with the department of commerce and they will tell you how to secure a business loan through the SBA.