Credit Guide for Small Business Owners

So, you need a loan. What’s next? If you’re a small business, then you have several options for obtaining one, but you need to know how to prepare your request and where to go to ask for the loan.

The financial experts at the Federal Reserve Bank of New York have created a very informative and very detailed booklet on exactly what you need to do. Called The Credit Process: A Guide For Small Business Owners it begins at the beginning, and walks you through your options and the materials you will need to prepare.

The guide starts by talking about funding sources and types, as well as covering good reasons to borrow, and the types of loan you should be looking for based on the stage of your business.

The next section covers the preparation of your loan request and business plan. First, you are given an outline of a basic business plan. Then in the “What the Lender Will Review” section it breaks down each component—such as balance sheet, profit and loss statement, and financial projections—tells you what a lender is looking for, and provides a sample for you to work from

The following section provides resources you can contact for help. And, the final section discusses your recourse if you are not approved for the loan. There is also a useful glossary that helps with any unfamiliar terms.

If you’re considering applying for a loan, be sure to check out this very useful guide: The Credit Process: A Guide For Small Business Owners.