 TITLE: How Do You Get a Loan to Start a Business? CONTENT: What Do Lenders Look at When Assessing Business Loan Applications?\n------------------------------------------------------------------\nGenerally speaking, a lender looks at your business financials and business credit to decide whether you qualify for a business loan. But when you're applying for a loan as a startup, your business financials and credit alone probably aren't substantial enough to qualify you. Even with established businesses, personal credit scores and histories often play a role in securing business credit. The Federal Reserve's 2020 Small Business Credit Survey found that 88% of small businesses that received financing used the owner's personal credit score to obtain it.\nIf you're planning to apply for startup financing, be prepared to provide your personal credit information in addition to any business credit history and score you may have. You may also want to consider what collateral you can use to secure a loan—and improve your chances of approval. Among established small employers who received financing in 2019, 59% used personal guarantees to secure their business debt, according to the Fed survey. However, if you have business assets—equipment or receivables, for example—you may be able to use these as collateral. Are you concerned that your credit and\/or assets won't measure up? A cosigner who puts up their personal assets and credit history as a guarantee may help.\nEven if your business is pre-revenue, your business plan and financials help round out the picture. By showing your projected revenue, expenses, cash flow and debt, you can help to demonstrate the viability of your business. Furthermore, your experience and insights into the industry can show your ability to lead your business to success. END