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When looking at starting your own business, or expanding an existing business, an entrepreneur is likely to shop around for the best bank loans available. A few simple tools can help streamline the search for the best small business loan terms:
Identify Your Needs and Do Your Homework
Before you begin your search, ensure your are clear with respect to the amount of money you need. The worst question to ask a loan officer is: " How much can I get?" Your treatment at the bank will be will likely be scaled down to "rookie" status. The most detrimental aspect of being a rookie are the unfavorable loan terms. Then, prepare a business plan. Be sure to seek the help of business networks that will help analyze your case and estimate the amount of unsecured loan that you could obtain.
Start with Your Own Contacts
Start with your personal bank. Apply with the bank that holds your personal and business accounts. Your existing relationship will help you avail the benefit of maintaining the banking history and possibly resulting in favorable processing. If these terms are not favorable, then seek references to other banks and loan officers through your personal network.
Do your Own Calculations
Make sure you download a bank loan calculator that are readily available online to verify any information the bank provides. This will ensure you get taken seriously and will result in better terms and less opportunity for the bank to inject hidden costs. Be knowledgeable and always ask questions when you do not understand something.
Look at Credit Unions
Many times, credit unions can offer the best bank loans. Credit unions tend to be community-driven and can offer better terms because they are local and have a smaller hierarchy. Make sure you explore this option before you commit to any bank.
The Best Bank for Your Small Business Loans
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