http://smallbusiness.blogs.cnnmoney.cnn.com/2008/04/15/what-makes-a-successful-loan-application/ Editors from FSB magazine answer your pressing small-business questions. Thu, 05 Nov 2009 16:07:19 +0000 http://wordpress.com/ hourly 1 http://smallbusiness.blogs.cnnmoney.cnn.com/2008/04/15/what-makes-a-successful-loan-application/#comment-564 Heath Nichols, Boca Raton, FL Thu, 24 Apr 2008 19:32:08 +0000 http://askfsb.wordpress.com/?p=272#comment-564 Establishing bank credit is a tricky thing to do - unless you know the banks who offer such programs and how they look at an application. When it all comes down to it, banks work in two areas - credit or collateral. There isn't any grey area in between. The most common mistake that business owners make is that they ask for too much than what the lender can extend on credit to a business, which inevitably results in either a turndown or an offer of a secured loan or line of credit to personal assets. Depending on your situation, this may or may not work for you. The main problem when tying up personal assets is that it appears under your personal credit, which drops your score when you draw down the funds - and also affects your debt to income when applying for personal loans, as well. There are reputable companies who can assist you in obtaining the credit you need for your business that can be found on the web. Just make sure you check with the Better Business Bureau first before doing business with them - and only work with companies who are confident enough to be paid on a contingency basis! Establishing bank credit is a tricky thing to do – unless you know the banks who offer such programs and how they look at an application. When it all comes down to it, banks work in two areas – credit or collateral. There isn't any grey area in between. The most common mistake that business owners make is that they ask for too much than what the lender can extend on credit to a business, which inevitably results in either a turndown or an offer of a secured loan or line of credit to personal assets. Depending on your situation, this may or may not work for you. The main problem when tying up personal assets is that it appears under your personal credit, which drops your score when you draw down the funds – and also affects your debt to income when applying for personal loans, as well. There are reputable companies who can assist you in obtaining the credit you need for your business that can be found on the web. Just make sure you check with the Better Business Bureau first before doing business with them – and only work with companies who are confident enough to be paid on a contingency basis!

]]> http://smallbusiness.blogs.cnnmoney.cnn.com/2008/04/15/what-makes-a-successful-loan-application/#comment-560 Marshall Lebovits Redondo Beach, CA Tue, 22 Apr 2008 01:55:38 +0000 http://askfsb.wordpress.com/?p=272#comment-560 What Will a Banker Ask Me? (http://marshall-showmethemoney.blogspot.com/2006/12/what-will-banker-ask-me.html) offers some great tips on how to prepare your request for a loan. What Will a Banker Ask Me? (http://marshall-showmethemoney.blogspot.com/2006/12/what-will-banker-ask-me.html) offers some great tips on how to prepare your request for a loan.

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