
How much will a bank lend to a small business that is just starting out?
I am starting a business and need some money to get things going. If I go to a bank what kind of information will they ask me. I only need about $10,000 dollars so I was also wondering if that is a relatively small loan for a small business and how much they will scrutinize my application. Thank you. (By the way, my personal credit score is about 720 if that would help with the loan)
Public Comments
- They will require you to have at lease 30% of the start-up costs on your own and they will require a business plan with 3 year cash flow projections. Since it is a small business loan they will scrutinize it VERY heavily since over 90% of all small businesses fail within 2 years.
- Any lender will require a business plan that shows that you can pay the loan back. Go to sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.html for instructions on how to write a business plan.
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