Understanding the Basics of Borrowing Money (Part 1 of 8)

Part 1: Borrowing Money

The Small Business Administration has published a series of links about the most common question asked by individuals looking to start a business, "How do I get money to start my business?" This series of 8 posts will begin to answer this complex question.

From http://www.sba.gov/: Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach a lender for a loan, it is a good idea to understand as much as you can about the factors the bank will evaluate when they consider your application. This discussion outlines some of the key factors a lender uses to analyze a potential borrower. Also included is a self-assessment checklist for you to complete.

Look for Part 2 of this series, Types of Financing, on 5/12/2010