 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: How Do You Get A Business Loan?\n-------------------------------\nYou can get business loans from a variety of sources, including large commercial banks, community banks and direct online lenders. Established businesses can get loans backed by the Small Business Administration (SBA). Called SBA-guaranteed loans, these loans are made through approved lenders and range from $500 up to $5.5 million depending on which SBA loan program is used.\nBank loans and SBA loans have the most stringent requirements for loan approval. When approaching these lenders, you'll generally need to provide documentation including a detailed business plan; bank statements; contracts and incorporation documents; financial statements and financial projections. You may also be required to put up collateral—either business property such as machinery, inventory or accounts receivable, or personal collateral such as your home.\nMost lenders will consider both your business and personal credit scores, so before you apply for a loan, get a copy of your business credit report and personal credit report as well as your personal credit score. Knowing your credit scores will help you identify which types of loans you're most likely to qualify for. The higher your scores, the more likely you are to be approved for loans with stricter criteria, such as SBA loans. If your scores are only fair, you'll probably have better luck approaching lenders that have looser criteria.\nBusiness loans typically have fixed interest rates. The rate you can qualify for will vary depending on the loan amount, the type of loan, the lender and your business's creditworthiness. END