4 Reasons Why it is Good for Startup Businesses to Get a Business Loan

Borrowing money is one of the most common funding sources for small businesses. Everyone have a different view where to source out the capital needed in launching a business, or in starting a finance backup plan. Below are some reasons why you may choose to apply for the Business Loan offered by Businessman Finance Solutions:

1. Business Loan is the lifeline of your business

Insufficient capitalization is one of the main reasons why most businesses fail. Many entrepreneurs do not take into account how long it will take, to break even and make profit. Stores build overtime. It’s extremely likely that a store will run at a loss for a year or even longer while it builds a clientele, a reputation, relationships with customers and so forth. No matter what else happens, you have to pay the rent for that period. If the store is not making money yet, then you have to pay that rent out of savings. If you can’t pay the rent you are going to go bankrupt and be evicted.

2. It is often hard to get approved from the bank

It is difficult to rely solely on the banks to finance your new venture, because many banks have tightened their lending requirements. Since money is a key factor when it comes to starting a business successfully, you should consider alternatives to obtain personal loans to begin your new company. Also, some private banks require a collateral security as a backup for your loan application.

3. No need to rely on savings and credit cards

Borrowing funds through Business Loan to pay start-up costs benefit business owners because they do not have to rely on personal savings and credit cards to fund new business purchases. Many new business owners over-extend personal credit to pay start-up expenses. Borrowed funds eliminate personal financial risks business owners take on when starting a new operation.

4. You can use Business Loan to cover marketing cost

You have to market the business some way; make people know it’s there and want to come in and look around. All of these things cost money. Most people starting a business don’t have that kind of money. You must make a budget and run it out for at least three years and determine your expenses, and then you need to determine what your breakeven point is and then you need to make various forecast models that show what it would take for you to survive and thrive.

If you think that at least two out the four reasons discussed above are justifiable in getting a Business Loan, you might want to check out Business Loan offered by Businessline below:

Apply for Your First Business Loan Now!

Qualifications

• 21-60 years old, Filipino Citizen
• As long as your business has been operating for more than a year, you are qualified for a loan.

Product Features

Basic Requirements:

• Duly filled-out and signed Application Form
• TIN ID and any other government-issued ID proof of the Principal Borrower
• Latest three (3) months Bank Statement and Bank Certification
• Photocopy of valid Mayor's Permit
• 2" x 2" ID picture of the Principal Borrower
• Picture of the Business
• Latest (not older than 2 months) proof of billing for Business and Residence (e.g. electricity/water/cable etc.)
• Sketch/map of Business and Residence location with nearest landmark

Additional requirements (photocopy of the following documents):

For Sole Proprietors:

• DTI Certificate of Business Name Registration (original; and renewal, if any)

For Partnerships:

• Business TIN ID proof (BIR Certificate of Registration)
• SEC Certificate of Incorporation/Registration
• Latest Articles of Partnership & By-Laws

For Corporations:

• Business TIN ID proof (BIR Certificate of Registration)
• SEC Certificate of Incorporation/Registration
• Latest Articles of Partnership & By-Laws
• Latest General Information Sheet (GIS)
• Secretary's Certificate