So you’ve decided to start a business! You need to get a small business loan, but are unsure of what to do before you apply for that loan?

Following these steps will save you time and frustration during the application process.

Step 1: Check your credit
In order to be considered for a loan approval:

• You must show and prove creditworthiness to the lender.
• Pull and review your credit report for free www.annualcreditreport.com
• The credit requirements vary by lender but your score should be at least a 630.

Step 2: Determine how much you will need to borrow.
This covers three steps:

• Complete a business plan
• Include in the business plan projected financial statements (the financial section will aid you in determining how much you will need)
• You can find a sample business plan template at http://app1.sba.gov/training/sbabp/bptemplate.pdf

Step 3: Be sure to have all business licenses
You will need to have all licenses pertinent to your business in place before you contact the lender. For a Philadelphia, Pennsylvania business the main three licenses are:

• Business Privilege License (City) http://webapps.phila.gov/li/
• Registration of Fictitious Name (State)http://www.dos.state.pa.us/corps/lib/corps/20/7/311.pdf
• Employer Identification Number (Federal) http://www.irs.gov/pub/irs-pdf/fss4.pdf

Step 4: A business checking account
Every business owner should separate his/her personal finances from the business activity. This will allow you to track your business’ profit and losses.