Steps for investigating and securing a business loan

1. Preparation: this involves coming up with the business plan and cash flow projections, which provides the lender with financial data to assess the risk and determine whether the business can repay the loan. Other information needed include a statement of personal financial status, previous business tax returns, and a credit rating report.
2. Investigation: after making sure that all the documents needed to secure the loan are present, one should take time to investigate the lending rates charged by all the lenders in order to determine their terms and conditions and the impacts on the business.
3. Securing the loan: this involves persuading the lender that the business is less risky and can repay the loan. This involves informing the lender the collateral present, the amount of money owner will put into the business and the experience.

Steps for investigating and securing a business loan