Financing

Before requesting a loan, a person should be prepared to provide detailed factual information about the business.  A business plan is especially helpful in securing a loan.  Keep in mind that no bank or agency will take 100 percent of the risk.  Most institutions expect a business person to invest 20 to 30 percent in the business.  General credit requirements of a loan applicant include:  1)  must be of good character, 2)  must show ability to successfully operate a business, 3)  must have enough money or be able to provide from personal resources sufficient funds to withstand possible losses (this is particularly true during the early stages of a new business), and 4) must show that the proposed loan is of sound value and reasonably secured to assure payment.