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Business funding sources for today's business owner...

Guest post by: Joe Ferriolo

Article Overview: Yes and no. Yes if you have a strong personal credit score. No if you are typically under a personal fico score of 720. The banking industry has significantly tightened the credit requirements recently in the last 12 months. If you do maintain a strong credit score then you are in luck.

Business funding sources for today's business owner...

Yes and no.  Yes if you have a strong personal credit score.  No if you are typically under a personal fico score of 720.  The banking industry has significantly tightened the credit requirements recently in the last 12 months.  If you do maintain a strong credit score then you are in luck. SBA loans are still available to small business owners with little to no financial documentation required. Please keep in mind that the SBA does not lend the money, the bank lends the money.  The SBA provides guidelines that the bank abides by.  In return the SBA will guarantee a percentage of the loan being offered by the bank.

 Finding the right bank to apply for a SBA loan is very important.  When speaking with your bank ask these questions before applying: 

• 1. Do you require business and personal tax returns for the past three years?
• 2. What industries are you not lending to?
• 3. Do you require collateral to secure a loan through your bank?
• 4. Will you lend to a business less than 3 years in operation?
• 5. If I apply for a smaller loan amount will you require less documentation?

Do not be discouraged, there are banks still out there lending under $60,000 with little documentation. Just make sure you are doing your due diligence.  Remember the bank that can help you may not be located in your community.  Make sure to research banks that lend nationally.

Wise Man Finance

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Article Tags: 12 months, 3 years, banking industry, banks, collateral, credit score, due diligence, fico score, financial documentation, li li, man finance, money, personal credit, personal tax returns, sba loan, sba loans, small business owners, wise man



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