For many, acquiring a capital for their business is the surest path to realizing that dream - the American Dream of Financial Independence.

Because lenders prefer to loan to businesses with established financial histories, loans through traditional lenders can be difficult for new businesses.

In today’s market, it is extremely difficult to receive approval on your loan application. Whenever you turn on the news lately, it seems like there is always at least 1 new bank that is asking for the government to take over control and bail them out. It is no wonder banks are reluctant to lend, with all of this market volatility.

It can be intimidating to go through the business loan application process. According to a recent study, over 80% of small business loan applications are declined due to presentation alone!

The good news is that, even in these times of tight credit, business capital is still available. Borrowers with good credit can still get approved for unsecured signature business lines of credit up to $250,000. Financials, such as balance sheets, business tax returns, profit and loss statements, etc., may not be needed to obtain these lines if the borrower has good credit.

A loan with an interest only payment can be great for cash flow purposes. Your estimated payment for every $10,000 would be approximately $65.00. Based on overall qualifications, the term can range from 1-5 years.

As long as punctual payments are made, it is renewable every year, even after the initial term expires.

Do not forget that the lender is in business to make a profit and that can only happen if you continue to keep borrowing from them and paying on time. No bank or lender wants to terminate relations with a customer who pays regularly and on time.

These loans will not show up on your personal credit if structured properly! Proceeds can be used for expansion or to float the business during slow times.

In order to ensure that your application is initially approved, you must follow some simple procedures.

The first thing to look at is your credit history and how good it is. And if it is not very good, then you need to figure out how to improve your credit history. Fico score of 680 minimum. Most lenders use Experian score and the higher the score the higher the approved loan amount. At least 5 trade lines or creditors, called the "rule of 5", are included in credit guidelines. They must have been opened for a minimum of 5 years. You need at least one credit card with a limit of more than ten thousand dollars. You're good to go if you meet these guidelines.

Regarding your credit, make sure that your employer information is correct. It is imperative that information regarding your employer, such as name and address, agree with the information contained within your bank loan application. Do this first, so as to avoid a lender's underwriter digging deeper into the credit file. The longer they look at your credit the better the chances are they will find a reason to decline your business line of credit application.

You must be a business owner for a minimum of two years before you can complete the next step. It does not matter if you are a sole-proprietor, corporation, limited liability, etc. To meet the 2 year seasoning requirement, you can even buy an existing business! If this is the method of choice, kindly remember that ownership must be seasoned for ninety days before business lines of credit may be applied for.

As the business produces more profits, you will be allowed to attain more capital. As long as you remain a good paying customer, the limits are endless. Increases to your credit line can be requested every 6 months. Credit partners are also something you can use to your advantage. Almost every lender will require that you open some type of account with them. And they will expect this before they will approve your loan with them. This way they can set up automatic payment, which will be easier for the both of you. This lets them know that you want to develop a relationship with the bank. You will have access to more capital as you grow your relationship with each bank. Interest rates are based on what Wall Street Journal Prime rates are. There is always a few percent added to the prime rate.