How to get a Business loan?

There are various kinds of loans available to the business owners. They have to just pick the right one keeping in mind their own requirements, specific needs and personal capabilities of repaying the loan. Whatever be the size of the business, the lenders always verify the actual purpose of the loan and the viability or profitability of the business, before giving any loan. So, every loan request from the business enterprise should bear proper documentation showing the growth prospect and the estimated profits of the business clearly. Required documentation of loan varies from lender to lender. But the documentation of a business loan generally requires: A strong Business Plan including an outline of target market of the business and the growth prospect of the business.

# Proof of ownership of the business

# Collateral to secure the loan

# Personal financial statements

# Tax returns

# Past credit record

Business loans can be availed from various resources. Among them Bank loans are very frequently taken by business owners. But it is very difficult to impress banks and it needs extensive documentation of business growth plan. For this reason maximum amount of loans granted by the bank goes to the large and established business houses.

It is somewhat difficult for the small businesses or the start up businesses to acquire business loans from banks. The type of loan which is best suited for small businesses are Govt. loans. As these loans come with no limit on the loan amount and can be availed at easy terms and conditions, these are ideal business loan for a small business or for a business yet to be started. If a business owner succeeds to assure the govt. about the authenticity and profitability of the business using a well designed business plan and if the business owner has no criminal record, then it is not a difficult task to avail a govt. loan. Govt. also provides some special loans to the elderly people who want to start a business and also to the minority people for a new business set up. Loans for business can also be taken from other large business houses at the cost of indulging in a partnership with them.