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Starting a small business is an excellent way to secure your financial future, gain freedom and control of your time. Chances of success improve when using methodical strategies including developing a business plan, financial planning and researching local laws. Local small business centers and the Chamber of Commerce are invaluable resources. When it comes to obtaining financing, small local banks are the key.

So, how to get a loan to start a business? Once you have devised your brilliant money making idea, write a business plan. There are many excellent resources on the Internet detailing the process. Google is you friend! With business plan in hand, make appointments with the business loan officers in a few of the smaller, local banks in town. Forming a good relationship with a loan officer makes all the different in the ease of your experience. Since you are just starting your business, you personal credit will be considered and you can use personal assets as collateral. If you have bad credit or no assets, find partners or ask a family member to cosign.

Unfortunately, the techniques for how to get a loan to start a business are trickier than those for starting an already established business. It is important that you develop a strong business plan including detailed market research, information about local and federal laws, and success of comparable business in other geographical regions. The more educated and prepared you are, the more likely the bank will have confidence in your ability to turn a profit.

When starting a business, it is important to be resourceful, but used equipment, and be cautious when using business consultants. Be aware if they attempt to sell you packages or particular brands of products through them. Always shop around. This advice also directly applies to business loan shopping.

You may also obtain quotes from on line small business loan companies. If your personal credit score is high, you might be able to obtain a lower APR from a company not supporting a brick & mortar establishment. Local banks, however, are directly invested in developing commerce in the community they are established in. For this reason, they are often your best advocate for how to get a loan to start a business.

This Business article was written by Mark Karavan on 11/9/2009