Scene one: you are sitting on your office desk surrounded with files and work overload, you are thoroughly frustrated. You work hard and get paid. But somewhere something is lacking.

Scene two: you work for yourself; you do what you want to do. You work hard and you are satisfied. You go home a better person each day cause you work for yourself. And you definitely earn more.

You don't even have to look at the results; votes for Scene two are definitely more. You want a life like that. But every business entails capital. Small business loans can accrue the capital you need to start a small business. With so many online sources for small business loans, you don't need to rely on family or relatives for capital.

Homework! Yes, it is not meant for school kids only. You too have to do it, to find the right resource of your small business loans. There are a few points, the loans lender will be looking at, when he is contemplating providing you small business loans. A lender will be paying attention on your education, experience, business plan and its feasibility. Other things that are crucial are repaying ability, credit history, equity, presence of collateral.

The first things will be your ability to repay. Every loan is meant to be repaid. Loan lender wants his money back. They will look for a business that has existed for some years now. If you are starting a new business, prepare an application that will prove to them that you will repay the loan. If your business is low risk proposal, you are getting a small business loans.

Presence of collateral would provide a positive boost to your small business loan application. The financial institution would be looking for an alternative source to payback the loan. Without collateral, you would need a cosigner who can pledge collateral. Collateral can be any business or personal assets that can be sold to pay for the small business loan. The market value of collateral is not taken into account but the value which results after negating the valued lost when the collateral is liquidated.

Equity is also significant. The equity will be in the form of money you invest in your business. The loan lender will be very pleased to know, if you have invested your money in the business. If there is enough equity in your business to payback the loan, the small business loan will be yours.

The next crucial thing will be called a credit report. If your credit report is good, your small business loan application will be reaching the top of the application pile. If you have no idea what your history reveal for you ? get a copy of credit report. Make sure the details given there are correct. In case there is an error, get it corrected before you apply for small business loans. Pay all the pending debts and get going.

The question that you will be facing with small business loans is what you are going to do with the money. Give concrete answers. Convince the lender that you will repay the small business loan with long term profitability that your plan ensures. Your confidence will be a key to unlocking small business loans.

Small business loans are available in three forms -

Short term loans will solve funds problem for immediate business starting. Their term is usually one year or less.

Intermediate loans are meant for large initial expenses with loan term between one to three years

Long term loans supply for initial costs of a start up business and extends from three to seven years.

Documentation! Yes, just get ready with your file of documents and make sure it has ? proof of ownership, letters of reference, contracts, tax returns, financial statements, credit references, Incorporation or LLC organizational documents. The loan lender might ask for any other documentation for small business loans.

Read the small business loan agreement carefully and have your lawyer review it. Some terms can be negotiated with the loan lender. If your circumstances are favourble, you can even manage to waive some terms. Obtain terms which you are comfortable especially with regard to repayment process and interest rates.

You can have a great idea, great people to work with, a well written business plan ? everything, almost everything. All you need is a small business loan to make it a success. So, how do we begin writing the success story? With writing small business loans application.