Tips for getting a small business commercial loan

5/8/2011

While small business lending is generally improving, it still may be difficult for some entrepreneurs to get commercial loans. The San Francisco Chronicle recently offered some suggestions for small businesses having trouble securing these loans.

First, the source recommends not quitting a day job to get a loan for a new business. Lenders like to have secondary sources open for repaying a loan in case the business venture ends up not being profitable. Having a day job gives entrepreneurs that secondary source, which makes it a lot easier for financial institutions to lend to them.

"She suggests that it may be wise for the borrower or spouse to keep their day job for covering their personal expenses, and that the lender may want to see that day job income in addition to a separate source used to repay the business loan," the San Francisco Chronicle suggests.

Lenders also like organized entrepreneurs. If they see that a business owner is able to keep detailed records of all of their purchases and expenses, then they will be more likely to approve a loan to that individual.