Business Loan questions? -

Does anybody know how hard it is to get a business loan? Do you need a formal business plan and all that?Right now I am still living at home so I have no expenses. I am going to school for machining and working part time a machine shop. I would like to borrow possibly about $5,000 to buy my own milling machine to start my own shop. Would I have any chance of getting approved for this? What kind of rate would I be looking at? I have had about 3 other loans and never had a late payment and paid all three off early. I am sure a formal business plan is a great idea but I have no idea how to right it up but I have a lot of ideas on things I could make and sell. Plus I have a lot of friends that offer me good money to make them things and I am getting tired to telling them no because I don t have a machine.I am sure if I had to I could get a cosigner but I get tired to having to do that like I am a 10 year old again. The last two loans I had I got on my own but they were not for $5,000. Plus they were for cars and the bank had the title so if I didnt pay they would come get the car, I don t know what they would do if I didnt pay on this machine. I am sure I could pay it off within 6 months but the bank may think differently.

The Small Business Administration has a wealth of information for the successful funding, running, managing and growing small businesses.You can view their main site at http://www.sba.govSpecifically, the link below seems helpful in your situation: http://www.sba.gov/services/financialass��Basics While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Whether you re starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well. These qualities ensure that entrepreneurs avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money. Within Basic Financing Topics we��ll review: Financing Basics Estimating Costs Personal vs. Business Capital for Growth Equity Financing Financial Statements How to Prepare a Loan Package (free online course) http://web.sba.gov/sbtn/registration/ind��

Yes you d need a business plan and they would also want to see some business experience. If you only need $5K then just get a personal loan.

As an aspiring entrepreneur you have to realize the road ahead is going to be tough. While one of the hardest things that you have to do to start your small business is to get the funding that you need to start up. Most small-business owners are lucky enough to have enough resources such as surplus funds in their savings accounts to start their businesses. But for the majority of those business owners just like you and I, we require some help and assistance.http://www.worldbestloans.com/businessloans.htmWith the recent recession and the economy heading towards a downward spiral, getting the loan that you need to start your small business is going to be a very difficult road for you. But thanks to Uncle Sam there is a better choice out there for you. The government is going to offer you a small business loan grant. The benefits of getting a grant from the government is the fact that it never has to be paid back unlike a normal loan from major banks such as Bank of America Wells Fargo etc.