 TITLE: How Do You Get a Loan to Start a Business? CONTENT: There are three essential steps to ​getting a small-business loan​:\n1.  Create a business and financial plan.\n2.  Check your business and personal credit.\n3.  Find lenders and apply.\nWriting a business plan and mapping out your business's financials is a critical step. Your plans and expense sheet show lenders (and you, for that matter) how your business will grow: what you need to get started, where your funding will come from, what you can expect in sales and expenses, the experience and skills that will propel your business forward, and what success would mean over the next five years. Because your startup doesn't have a track record, these plans help lenders evaluate its risk.\nStartup funding often comes from multiple sources. For example, if you need $100,000 to launch your business, you might contribute $25,000 from your personal assets, get $25,000 from friends and family who want to invest—or from a crowdfunding campaign—and borrow the other $50,000.\nCredit scores are another key metric. Businesses have their own credit scores that assess creditworthiness based on past behavior, including if the business has any collections, liens, judgments or bankruptcies in its history. For established businesses, a ​good business credit score​ can open doors and help secure favorable loan rates and terms. Your startup, though, may not even have a business credit score yet. If that's the case, lenders will rely on your personal credit score and report. Although requirements vary, you'll generally need a high credit score to get a business startup loan. Since startups are inherently risky, your personal good credit acts as a counterbalance to that risk.\nOnce you have your financials in order and know your credit situation, you're ready to look for a lender—or, more accurately, several. Finding the right financing for your new business may require knocking on a few doors. Fortunately, there are multiple options to explore and resources that can help. END