CHASE - CREDITCARDS

Starting A Business--What You Need to Know Before You Go To Your Bank For A Loan

You will save time and improve your chances of success if you prepare. Here is a checklist of what bankers look for when deciding whether to loan you money for your new venture.

• Business Plan—you must persuade your banker that your start-up business will be successful. Your plan should include your vision, strategies and tactics to convince the banker that you have a sound business concept.

• Credit History—your proposed business has no credit history, so the bank will examine how you have paid off your personal debts. You can get a copy of your credit report in advance and correct or be ready to explain any problems or inaccuracies.

• Personal Contribution—the bank wants you to invest your own money in the new business as well. Your level of investment will indicate your confidence and commitment to making your business profitable.

• Collateral—you must provide a list of assets by which you will secure your loan.

• Payment Schedule—your business plan must include a detailed cash flow projection to provide for repayment of the loan.

• Related Experience—be sure to include a professional summary of your successful experience in a similar industry or business activity.

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