This question is for Essays Guru. Financial Ratios Paper

Business Loan Eligibility

Avonda Ellison

FIN/375

May 22, 2017

Richard Vermeer

Last week team A discuss business loan requirement as a group. As a team while discussing business loan requirements we came to a consensus that getting a bank loan for a start-up business can be a challenge. Many banks don't want to provide loans for start-up businesses because the business slacks financial history and experience. During week Two team A discussion eligibility between the SBA and TD Banks. We found that TD bank loan requirements different from the SBA for instance, one of TD Banks eligibility factors is 3-5 years of business history. The SBA, because they are federal providers, work with lenders like TD Banks to assist owners in obtaining loans, by guaranteeing repayment, if the owner defaults. The SBA focuses on the aspects of the business and its principals, such as, what businesses do to earn income, the character of its ownership, and where the business operates. TD Banks is willing to provide financial lenders, such as insurance and financial companies with loans, the SBA will not, and has more restrictions on speculative businesses. Banks generally provide loans for businesses of all types and sizes, the SBA provides loans to small businesses only.

Researching additional business loan requirements loan eligibility for week 3 I found that in general most institutions required the same criteria for business loans. From my own research, I came to the same conclusion that securing a loan for a business is not an easy affair especially when it's a start-up business. Doing my research, I found institutional requirements for business loan eligibility are business credit report, complete business plan, providing information on the type and nature of the business, financial history/statements, tax returns, and financial forecast. You must also, demonstrate a knowledge of the loan needed, provide a list of collaterals, state business license, and allow the bank to access your credit history, to assess your reliability of making payments on the loan.

When all is said in done, the I felt that business loans are critical wellsprings of assets that can be used to fund private ventures however borrowers must guarantee that they meet every one of the necessities for loan qualification. The team likewise felt that business loans are an debt that are a must when starting or expanding a business and businesses should use these loans in the most productive approach to get the most out of them and help increase business profits in order to make space for future credit qualification.

References

Small Business Association (SBA). (2017). Retrieved from https://www.sba.gov/loans-

grants/see-what-sba-offers/sba-loan-programs/general-small-business-loans-7a/7a-loan-

program-eligibility

TD Banks, Dwayne Jones, 901 Cypress Gardens Boulevard, Winter Haven, FL 3380. Tel.

(863)295-9796.

Week 2 assignment (2017). Retrieved from https://newclassroom3.phoenix.edu/Classroom

/#/contextid/OSIRIS:51082948/context/co/view/activityDetails/activity/e621c56d-ae2d-

4396-8bf9-bd815f6708ed/expanded/False