Fresno, CA -- (SBWIRE) -- 08/14/2014 -- Starting and maintaining a small business is a challenge, to say the least. No matter how prepared an entrepreneur feels, there will always be an unexpected cost around the corner.

Sometimes the cash “cushion” we have saved for such an unforeseen expense is just not big enough to cover it. Maybe it is the need for new equipment, or additional staff, or even a new facility. The list of reasons a small business needs funding are endless.

Unfortunately, the list of lenders that have the best interest in mind is not endless. We all know that banks and finance companies are in business to make money, but they often forget that so are them .

One of the top reasons for small business failures is lack of capital. Being able to access funding quickly can be the difference between the success of a small business and closing the doors permanently.

Small Business Loan Challenges
Small businesses are the drivers of the U.S. economy, and entrepreneurs are the main employers of U.S. workers. These are encouraging facts, but many small businesses do not succeed, and it will serve business well to learn why.

One common failure for small businesses is improper market research. The business must have an audience and must be aware of the specifics of the audience. This prevents spending money on advertising to the wrong market and will allow to effectively articulate angle on the market when speaking with potential investors or lenders.

Another problem is a faulty business plan or no business plan. The details of business will make or break it. Create a thorough business plan to identify possible challenges, and then develop a plan to mitigate these potential problems.

This not only prepares business for reality, but again, it will allow to effectively communicate these challenges, along with the mitigating factors, with potential lenders. This will go a long way in proving that have intelligently organized a plan to face potential challenges head on, and will establish a high level of confidence that the lender or investor’s funds are in the right hands.

Once it is clear that business has covered the necessary groundwork, now there is the need to acquire the capital to start or grow the business. If they have done research, and established business plan, chances for acquiring financing have already increased dramatically.

Establishing the Proper Financial Foundation for Fast Funding Approvals
Whether they are a new business that has just opened doors, and established business that has been around for years, or a potential start-up on a napkin in the basement, establishing the proper financial foundation for the business begins with the business owner.

Fast small business funding
Always ensure to maintain a high personal credit score. Lenders want to know that the person running the business is financially responsible, and will appropriate the funds in the right areas to increase the business’ value to the market. A business owner’s personal credit score is particularly important when attempting acquire funds for a start-up, as the business has yet to establish a credit rating.

If the business is established, maintaining accurate financial statements is crucial to acquiring additional funding as lenders and investors alike will want to see consistent cash flow, business asset acquisitions, and responsible bank account management. These are all indicators of a strong return on investment and will put the business in the best possible position to negotiate the best loan and credit terms.

For new businesses and start-ups, responsible bank account management, equal investment of personal assets or funds into the business, and a solid business plan are the keys to establishing the proper initial financial foundation for the business.

When the business gets up and running, be sure to organize the company financials and personal financials separately. Keep accurate records of money coming in and money going out from the start, as this will help them qualify for better loans and lines of credit in the future.

It is extremely difficult to establish accurate records later on when they are required by lenders and/or investors as part of an approval process if the framework was not set in place from the beginning.

Jessie Singh, director of the Biz4loans, delivered that message to lead off the small business seminar Tuesday in celebration of Indiana Small Business Week.

“We are committed to offering opportunities to Gary residents who start and run, or who have current businesses. Those businesses need to fit with our vision for the future,” Campbell told the dozens of current and potential business owners who attended the seminar at City of Gary Annex, 839 Broadway.

The seminar organized by the U.S. Small Business Administration Indiana District Office in Indianapolis brought together speakers to explain how lenders provide business loans, how to get help writing a business plan and how to sell products to government agencies such as the Indiana Department of Transportation.

Regional director of the Northwest Indiana Small Business Development Center Lorri Feldt said the agency serves Lake, Porter, LaPorte, Starke, Pulaski, Jasper and Newton counties and works with small business owners and startup entrepreneurs.

Free one-on-one business counseling begins the process of using the NW-ISBDC, she said. Other services include monthly workshops, such as Launch ones Own Business and QuickBooks, providing valuable, high quality demographic data and connecting people with resources throughout the area.

To obtain the necessary financing or capital to open and sustain a business requires a detailed business plan, Feldt said.

“This is like a game plan for a sports team,” she said.

Marty Anderson, lead economic development specialist with the U.S. SBA Indianapolis office, said the SBA helps small business owners through the 7(a) Loan Program and the 504 Certified Development Company loan program.

“There are three C’s of the SBA – counseling, capital and contracting. We provide the public with mentoring, which is the counseling; access to capital and government procurement,” he told the group.

“Remember there are no grants for startups and to expand the business. What one get is a loan,” Anderson warned the group.

“The SBA’s role is primarily a guarantor of business loans made by financial institutions,” he said. “They are always 100 percent on the hook for the loan because we are using taxpayer dollars.”

For those with credit problems or no credit history, microloans can be an alternative to obtain startup capital to open a business and to repair credit ratings, said Kyle Johnson, a lending team manager from Accion Chicago.

Accion clients haven’t been able to obtain loans from banks because of low credit scores or no credit history, he asid.

“We’ve been lending for five years in Lake and Porter counties. We are more flexible on requirements (than standard financial institutions). As long as we can see what’s on their credit report, we can work with them,” Johnson said.

“Our interest rates range from 10 percent to 18 percent. It’s not as low as a bank, but it’s lower than a credit card,” he said.

About Start up Business Loans
As commercial loan brokers, our mission is to provide our clients with the highest quality of service and efficiency. We provide our clients with extensive loan processing by experts on our quick, simple and safe process, while closing loans faster than anyone else. Here at Biz4Loans, the customer is our top priority.

Who We Are

Biz4Loans is a California-based loan company with an exciting new way of quickly closing commercial loans for businesses small and large. With a customer-centric focus and a high standard for quality service, we embrace new technology to pass cost savings on to our business clients.

Entrepreneurship Advocates

“Entrepreneurship is living a few years of the life like most people won’t, so that one can spend the rest of their life like most people can’t. “ – Anonymous

We believe entrepreneurship to be one of the most rewarding journeys that a person can pursue and that no two entrepreneurs are the same. Some seek a better life for themselves and their families while others take on the risk in pursuit of independence. Whether it is a small town where everyone knows each other or a big city that never sleeps, every community relies on entrepreneurs to create and provide jobs and to usher in new possibilities.

At Biz4Loans , we understand the challenges that entreprenuers face in financing their venture. We also understand that a startup entrepreneur frequently has to wear many different hats while her company is getting off the ground. This is why we provide a quick, convenient, and detail-oriented process that achieves results without unnecessary delays or obstacles. For more info visit http://www.biz4loans.com/