Is it difficult to get a small business loan?

Forum Value Business & Entrepreneurs Is it difficult to get a small business loan?

Viewing 11 posts - 1 through 11 (of 11 total)
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  • #1

    GenuineGal

    I’d like to start a small business, making and selling delicious and cute gluten free cookies to restaurants, coffee shops and small stores in Montreal. I know nothing about small business loans, so I was wondering if it was difficult to get one.

    #2

    Kenneth

    Well…it all depends on the loan you’re trying to get, small business loans are not all the same. But I’d say to maximize your chances of getting approved for a loan, you need to be clear about what you want.

    This means you will need a solid business plan, with all the details about your small business idea: the product you want to make and sell, what you will need to make it, how much it should cost you, the equipment you will need, where and how you will sell your product, how many sales you are expecting to make each month, how many employees you will have, if any…

    When you have a solid business plan, lenders know that you are serious about starting your small business, so they are more likely to give you that loan you are asking for. But if your business plan is unclear or incomplete, no one will want to lend you a lot of money.

    #3

    Velocity

    I agree that it’s always easier to get a small business loan if you have a good business plan. If your business plan is not quite ready, or if you don’t even have one, take your time to make it right. It will help you get approved for your loan.

    #4

    GenuineGal

    Oh that’s a good point. Thanks. I have a business plan yes, but it’s mostly scribbles because I wrote it only for myself to read. I will take time to write a clear version of it, with more details.

    #5

    Kenneth

    Good. And don’t be afraid to apply for more than one small business loans. If ever you get denied one, you might still get the other. And if you get all the loans you have applied for, then you’ll have a lot more money than you thought you would have to start your business on the right path!

    #6

    GenuineGal

    Good idea!

    #7

    Hockey1979

    I was about to recommend Thinking Capital, but I just realized you need to have been in business for at least 6 months to be eligible for one of their small business loans. But maybe they can help you out later, after you’ve started your cookie business.

    #8

    GenuineGal

    Yeah, I’m not officially in business yet… But I’ve been baking some cookies and selling them to my cousin’s coffee shop, and her customers love them. This is what gave me the idea to start a business. I’ve been doing this for a few months now, but I guess that doesn’t count as being in business?

    #9

    Hockey1979

    No I don’t think that counts… But maybe you could start small, keep going for at least 6 months, and then ask for a loan from Thinking Capital to really grow your business and reach out to other coffee shops and to restaurants. That would mean, keep baking cookies for your cousin’s coffee shop, but under your official business name. Try to see if you could find other businesses interested in buying your cookies. And after 6 months, you ask for the money you need to expand.

    But then again, there are many types of business loans out there. I recommend Thinking Capital because I already got a loan from them and everything went great, but if you need your loan right now, you can look for another small business loan option.

    #10

    GenuineGal

    Yeah, I need to keep thinking about this… But thank you for the advice!

    #11

    Hockey1979

    You’re welcome!

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