HOW CAN I GET A SMALL BUSINESS LOAN? I HAVE GOOD CREDIT BUT LITTLE CASH OR ASSETTS?

The truth is that it is difficult for a startup business to borrow money as a small business loan — especially without assets and without experience in the business.

However, if you’re applying for a loan and if it is a big amount, banks and even the Small Business Administration may consider the following factors:

- A business plan explaining what the business is

- Your background and experience in the business — in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don’t have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: “How much money are you requesting? What will it be used for? and For how long will it be needed?” Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

You have a very tight situation when you only have very little money and no assets. However, I suggest you talk to your local Small Business Development Center. They may be able to give you lists of banks and financial institutions in your area who may be able to give you a loan — even if it’s not a full amount. Who knows, one of the smaller local banks would be willing to take a risk on you.

Here is an interactive map of Colorado — click on your location to find the nearest SBDC http://www.advancecolorado.com/small-business/sbdc-map.cfm and ask for their help on how you can get the financing you need