Having organized financial information is key to getting loans

3/23/2011

With the economy on the upswing, many business owners are looking to invest more money in their companies to facilitate growth. However, they will need commercial loans to do this, which many entrepreneurs have been having trouble acquiring.

As the Kansas City Star recently suggested, organization is key to securing these loans. By having their company's financial history laid out in an easy-to-understand fashion, small business owners will be able to show lenders that they have procedures in place to help them repay their loans.

"Start-up businesses face challenges in this economic environment. Without a record of sales, it's difficult to paint a picture of profitability for the bank," explains the paper. "Relevant experience or training in the industry, a sound business plan, reasonable financial projections, an adequate injection of cash or down payment from the owner and a very good credit history are a must."

As many as 74 percent of small business owners believe that acquiring bank loans will be a challenge in 2011, according to a recent survey conducted by Office Depot.