Читать книгу Start & Run a Landscaping Business - Joel LaRusic - Страница 21

A business loan is another option, but bear in mind that banks do not loan money based on a great idea, no matter how well documented it is. Like a personal loan, a bank loan must be secured somehow. The bank will want you to provide your business forecast, business plan, cash flow summary, list of assets, and more. After that, it is still going to want to see collateral, and it will ask you to prove your commitment to the project by supplying a significant portion of the required investment. For these reasons, I recommend that you ask for a personal loan instead of going through the hoops for a business loan.

If you have incorporated your business and are planning to apply for a loan in the name of the business because you are “protected,” you may want to reconsider. The bank will ask you to personally guarantee the loan, and you’ll have to jump through many hoops to get the money you want. Again, you’re probably better off seeking a personal loan.

On the other hand, if you have been in business for a while and have built up a reputation, business assets, and some healthy and steady receivables, then a business loan may be just the thing you need when you are ready to expand or buy the next piece of equipment.