Jan
How to Get a Business Loan in an Economic Crunch
Filed Under (Green Business Basics, Green Business Loans, Start Up Business) by davidguide on 07-01-2009
Tagged Under : Business, Business plan, Credit score, Finance, Financial institution, Loan, Mortgage, United States

photo credit: Ajda Gregor?i?
With the current U.S. economic conditions, financial institutions are tightening their grip on funds. Markets have dropped dramatically, foreclosures are popping up like daisies in the spring and small-town banks have gone belly-up to be purchased by larger banks. Every day brings newscasts with more dreadful financial tidings and we’ve been warned that loans will be harder to secure. So, if your business is in need of working capital, you may be thinking that the outlook is pretty bleak. There is hope, however and there are a few things you can do to increase your chances when you sit down in front of that loan officer.
First, you need to develop a positive attitude. That may seem difficult, given the point of view of the media and the general population. It may be easier, though, if you simply remember a few important facts:
Lenders have to lend to make money. Financial institutions don’t simply gather funds. They make money by loaning money. Your finance charges and interest are your bank’s bread and butter. The bank has nothing to gain by hoarding funds because there’s a crisis.
Business is a good investment. It’s obvious that our financial institutions need something other than the housing market to invest in. Businesses like yours contribute to the economy, pay taxes and employ our citizens. Your government and your bank want you to stay in business.








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