Texas Legal Entities
Obtaining a Small Business Loan: Sources of Technical Assistance
Before a small business owner approaches any lender, it is an excellent idea to have another person look over the business proposal. This does not mean to ask a neighbor, friend, or a parent. It means that the prospective borrower needs to consult with someone that is more experienced. A second set of eyes is really important for someone that is a first-time commercial borrower.
By having a second person take a glance at the business proposal, the loan package needed will put in a form that is easier for the lender to reach a favorable credit decision. The reviewer will be able to point out any serious flaws in the plan and ensure that there aren’t any missing parts.
If an experienced friend or acquaintance is not available, there are some business support groups around that might be able to review the proposal and how it looks. Qualified counselors might be able to point out that the business might not even need more money. This can come along with better inventory control, improved marketing techniques, or other changes that could solve the cash flow problems.
A third source of review is the Service Corps of Retired Executives (SCORE). This group is sponsored by the United States Small Business Administration. Other individuals available for review include accountants and financial advisers.
Once the proposal is in great shape, it is ready to be presented to a lender. It is better not to just walk in to a lending institution but rather make an appointment. The lender can also be an excellent source of business and financial counsel.
Contact Texas Legal Entities
For more information on the process of obtaining a commercial loan, contact the experts of
Texas Legal Entities.
At any time, please feel free to ask us a question. It's FREE!