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The next step, once you know how much you are going to be asking for, is to write an outstanding business plan.
After you have a perfect business plan, you will need to gather the necessary documents that any self-respecting loan officer will want to see. You must appear to be well organized. Here is what you should dig out:
The next step is to be prepared. Rehearse what you will say to the loan officer. Be prepared for ANY questions the officer may ask. You should even be prepared to discuss how and when you will be able to pay the money back. Practice your speech over and over again, until you not only sound confident in yourself and your business plan, but you FEEL confident.
You may want to get a copy of your credit report before applying for a loan. This is the same credit report the loan officer will see. Make sure that everything on it is correct, and you might also try to clean up any negative reports also. A copy can be obtained by writing or calling your local Credit Bureau.
You may consider incorporating your business before applying for a loan. This doesn't guarantee that you will get the loan, but it will help a little. Also register your business with Dunn & Bradstreet. Call 1-800-333-0505 for more information.
For your home business, it is best to approach small banks~after of course you have tried to get financed through family and friends, as well as the Small Business Administration. Small banks are friendlier to small businesses.
If you are turned down at first, don't be discouraged. In fact, it is best to PLAN on being turned down at first. However, if you are continually turned down, go back and look at your business plan. Is it still as good as you thought it was? Ask a successful business owner to take a look at it. Ask them for suggestions, then try again and again. But no matter what, don't give up your dream of owning your own home based business!
