One of the major concerns facing business owners is access to adequate financing. Many owners launch their businesses with personal resources, so they may not establish credit when they open a business. Only after the business has grown do many owners try to establish credit.

Fortunately, there are sources of financing. The banking industry, the Small Business Association (SBA) and private individuals are important sources for working capital. The SBA is eager to help, but its funds are limited. The need for financing is a special concern for women and minorities. Check with area banks to find out if they offer special programs. Having a written proposal is one of the best ways to improve your chances of securing a loan. A loan proposal should contain the following information:

• General information about the business, such as the company name, names and Social Security numbers of the principal employees, the purpose of the loan and the amount needed.
• Business description that includes the history and nature of your business, as well as the age of the business, number of employees and current assets.
• Management profile on each principal in your business, detailing education, experience, skills and accomplishments.
• Market information that defines your products as well as your market and competition and a customer profile that explains how your business satisfies their needs.
• Financial statements such as balance sheets, income statements for the past three years, a personal financial statement and collateral that will be used as security for the loan.