I was denied a small business loan. How can I get approved next time?

I was denied a 15,000 loan (at a local bank that has several local branches) for starting my small business, because I have no equity or collateral, but I'm only 22 years old. Not many 22 year olds that I know have stocks, bonds or investments.

In the meetings I had with the loan manager, she seemed impressed and confident in my business plan. But on paper, I guess I don't seem like such a good loan applicant.

Is it more likely that I would be approved at a national bank?

What tips can you give me for next time I apply.
-Which banks are likely to approve someone without collateral.
-OR, What can I use as collateral or as a substitute.
-Any other tips?


Any information you can give me would mean a lot. Thank you! :)

Try to call a local bank and apply for an unsecured loan (don't mention you are using it for a business). Tell a local bank you want an unsecured line of credit available should you decide to pay off some bills or buy a car. I know Wells Fargo does those unsecured loans - call your local branch and speak to a personal banker. Again, don't tell them its a business loan just apply for a personal loan.

When you apply for a business loans most lenders require 2 years tax returns and financial statements. A loan officer cannot discourage you from applying it's the law, but they can explain the lending criteria.

Business loan can be difficult to get if you do not have collateral.

And if you don't have collateral you have to have superior credit.

Have you checked your credit? It has to be at least in mid 700's. Again, that is if you have no collateral. I am assuming you don't have an extensive credit history either.

I would find an "Angel" google the word "businessinvestment and angel"

here is one site
http://www.businesspartners.com/index.cf...

These are people who look for small business and start ups to invest in.

If that doesn't work and you are sure of your business. You may think of taking out a personal loan. This might be easier.

Don't pay attention to the people on here who are

trying to Scam you. Beware of Advance fee Loan scams.
DO NOT take any offers or click any links from people

that post on this board... 99.8% of them are SCAMS.
http://www.ftc.gov/bcp/conline/pubs/tmar...