• Home
  • About
  • Services
    • Services For Individuals
      • Personal Financial Planning
    • Business Services
      • Small Business Accounting
      • Payroll
      • Business Valuation
      • Succession Planning
      • New Business Formation
      • Internal Controls
    • Tax Services
      • Tax Preparation
      • Tax Planning
      • TAX PROBLEMS
        • IRS Audit Representation
        • Non-Filed Tax Returns
        • Back Taxes Owed
        • Payroll Tax Problems
        • IRS Liens
        • IRS Levies
        • IRS Wage Garnishment
        • IRS Seizures
        • Offer In Compromise
        • IRS Payment Plan
        • Innocent Spouse Relief
        • Get Your IRS File
    • QuickBooks Services
      • WHY QUICKBOOKS
      • QUICKBOOKS SETUP
      • QUICKBOOKS TRAINING
      • QUICKANSWERS
      • QuickBooks Tips
      • Buy QuickBooks and Save
  • Newsletter
    • Previous Newsletters
    • News & Weather
  • Financial Guides
    • Life Events
    • Business Strategies
    • Investment Strategies
    • Tax Strategies for Business Owners
    • Tax Strategies for Individuals
    • Frequently Asked Questions
  • Tax Center
    • Track Your Refund
    • Tax Due Dates
    • Tax Rates
    • IRS Tax Forms and Publications
    • Record Retention Guide
    • State Tax Forms
    • 1040 Tax Calculator
    • Marginal and Effective Tax Rates Calculator
  • Resources
    • Financial Calculators
    • News & Weather
    • SecureSend
    • Internet Links
    • Security Measures
    • Recommended Books
  • Client Portal
  • Contact

Contact Us

    Your Name (required)

    Your Email (required)

    Subject

    Your Message

    GLOBAL TAX & ACCOUNTING SERVICE INC.

    GLOBAL TAX & ACCOUNTING SERVICES INC.

    GLOBAL TAX & ACCOUNTING SERVICE INC.

    Click here for the client portal

    OFFICE -516-558-0065

    Email:omaida@globaltax.info

    • Fb
    • linkedin
    Your Personal Accountant Wherever You Are. Se Habla Español

    Contact Person

    Name: Omaida Fishman

    200 Broad Hollow Road, suite 203,
    Melville, NY 11747

    Cell: 516-784-7227

    Fax: 516-679-1964

    Email:omaida@globaltax.info

    Get Directions

    Financing Questions: Frequently Asked Questions

    Table of Contents

    • How can I raise money for my small business?
    • What types of loans exist for business financing?
    • What do banks look for when considering a loan request?
    • How do I write a good loan proposal?

    How can I raise money for my small business?

    Even though, raising capital is the most basic of all business activities, it can be a complex and frustrating process. There are several sources to consider when looking for financing. The primary source of capital for most new businesses comes from savings and other forms of personal resources. While credit cards are often used to finance business needs, there may be better options available, even for very small loans.

    Many entrepreneurs also look to private sources such as friends and family when starting out in a business venture. Often, money is loaned interest-free or at a low-interest rate, which can be beneficial when getting started.

    Outside of personal resources, the most common source of funding is a bank or credit union. Venture capital firms also help companies grow in exchange for equity or partial ownership.

    all_botnav_arrow_off

    What types of loans exist for business financing?

    To successfully obtain a loan, you must know exactly how much money you need, why you need it, and how you will pay it back. Your written proposal must convince the lender that you are a good credit risk.

    Terms of loans vary from lender to lender, but there are two basic types of loans: Short-term and long-term.

    Generally, a short-term loan has a maturity of up one year. These include working capital loans, accounts-receivable loans, and lines of credit

    Long-term loans have maturities greater than one year but usually less than seven years. Real estate and equipment loans may have maturities of up to 25 years. Long-term loans are used for major business expenses such as purchasing real estate and facilities, construction, durable equipment, furniture and fixtures, vehicles, etc.

    all_botnav_arrow_off

    What do banks look for when considering a loan request?

    When reviewing a loan request, the bank official is primarily concerned about repayment. To help determine this ability, many loan officers will order a copy of your business credit report from a credit-reporting agency.

    Using the credit report and the information you have provided, the lending officer will consider the following issues:

    • Have you invested savings or personal equity in your business totaling at least 25 to 50 percent of the loan you are requesting? Remember, a lender or investor will not finance 100 percent of your business.
    • Do you have a sound record of credit-worthiness as indicated by your credit report, work history and letters of recommendation? This is very important.
    • Do you have sufficient experience and training to operate a successful business?
    • Have you prepared a loan proposal and business plan that demonstrate your understanding of and commitment to the success of the business?
    • Does the business have sufficient cash flow to make the monthly payments on the amount of the loan request?
    all_botnav_arrow_off

    How do I write a good loan proposal?

    A good loan proposal contains the following key elements:

    General Information

    • Business name and address, names of principals and their social security numbers.
    • Purpose of the loan: exactly what the loan will be used for and why it is needed.
    • Amount of money required: the exact amount you need to achieve your purpose.

    Business Description

    • Details of what kind of business it is, how long it has existed, number of employees, and current business assets.
    • Ownership structure: details on your company’s legal structure.

    Management Profile

    Develop a short statement on each principal in your business, including background information such as education, experience, skills, and accomplishments.

    Market Information

    Clearly define your company’s products as well as your markets, identify your competition, and explain how your business competes in the marketplace. Profile your customers and explain how your business can satisfy their needs.

    Financial Information

    • Financial statements: balance sheets and income statements for the past three years. If you are just starting out, provide a projected balance sheet and income statement.
    • Personal financial statements on yourself and other principal owners of the business.
    • Collateral you would be willing to pledge as security for the loan.

    all_botnav_arrow_off

    Financing Questions: Frequently Asked Questions
    • ← Financial Trouble: Frequently Asked Questions
    • Getting a Loan: Frequently Asked Questions →
    Client portal
    Subscribe to newsletter


    Our Services

    We provide Business Services, Tax Services, QuickBooks Services and Services For Individuals.

    Read More

    • Long Island Location
      65 East John St.
      Hicksville, NY, 11801
      sal@salalbanese.com
      Phone: (516)417-8504
      Fax: (516)213-4895
      Cell: (516)987-9850
    • NYC Location
      2200 Broad Hollow Road, suite 203
      Melville, NY 11747
      sal@salalbanese.com
      Phone: (212)714-0064
      Fax: (212)629-9553
      Cell: (516)987-9850

    Client Portal

    Click Here

    Contact Info

    Address: 200 Broad Hollow Road, suite 203
    Melville, NY 11747

    516-679-1964

    516-784-7227

    516-558-0065

    omaida@www.globaltax.info

    Copyright © 2016. All Right Reserved. Powered by: WEB DESIGN YOU

    • Fb
    • linkedin
    MENU
    • Home
    • About
    • Services
      • Services For Individuals
        • Personal Financial Planning
      • Business Services
        • Small Business Accounting
        • Payroll
        • Business Valuation
        • Succession Planning
        • New Business Formation
        • Internal Controls
      • Tax Services
        • Tax Preparation
        • Tax Planning
        • TAX PROBLEMS
          • IRS Audit Representation
          • Non-Filed Tax Returns
          • Back Taxes Owed
          • Payroll Tax Problems
          • IRS Liens
          • IRS Levies
          • IRS Wage Garnishment
          • IRS Seizures
          • Offer In Compromise
          • IRS Payment Plan
          • Innocent Spouse Relief
          • Get Your IRS File
      • QuickBooks Services
        • WHY QUICKBOOKS
        • QUICKBOOKS SETUP
        • QUICKBOOKS TRAINING
        • QUICKANSWERS
        • QuickBooks Tips
        • Buy QuickBooks and Save
    • Newsletter
      • Previous Newsletters
      • News & Weather
    • Financial Guides
      • Life Events
      • Business Strategies
      • Investment Strategies
      • Tax Strategies for Business Owners
      • Tax Strategies for Individuals
      • Frequently Asked Questions
    • Tax Center
      • Track Your Refund
      • Tax Due Dates
      • Tax Rates
      • IRS Tax Forms and Publications
      • Record Retention Guide
      • State Tax Forms
      • 1040 Tax Calculator
      • Marginal and Effective Tax Rates Calculator
    • Resources
      • Financial Calculators
      • News & Weather
      • SecureSend
      • Internet Links
      • Security Measures
      • Recommended Books
    • Client Portal
    • Contact