How to obtain a business loan

It's always better to work for yourself instead of working for someone else. If you think you have the capability and a great work plan its better to execute it yourself. The basic idea here is why work for a pittance when you can earn a hell of a lot more and take creative control? Operating your own business requires financing. This is where a business loan comes handy.

When a concept is ready the next step is to arrange for financial resources which are the catalyst to every business function. Following are the various sources of business loans:

Banks And Financial Institutions
Venture Funds
Non Banking financial Corporations
Government funded organizations
Mortgage companies etc

A more detailed list of funding is here below:

Community Development Financial Institutions (CDFIs): CDFI's primarily provide loan financing to businesses in areas that need economic development.
Micro loans: The Micro loan Program was developed by the SBA in 1992 to increase the availability of very small loans to small-business borrowers. It achieved permanent status in 1997.
Asset-Based Loans: Asset-based loans are usually from commercial finance companies (as opposed to banks) that are offered on a revolving basis and collateralized by a company's assets, specifically accounts receivable and inventory.
SBA-Guaranteed Loans: What It Is: Term loans from a bank or commercial lending institution of up to 10 years, with the Small Business Administration ( SBA ) guaranteeing as much as 80 percent of the loan principal. Maximum allowed interest rates range from highs of prime plus 6.5 percentage points to prime plus 2.75 percentage points, though lenders can and often do charge less.
Private Loan Guarantees: A guarantee of payment that stands behind an early-stage company and enables it to take out a loan from a bank. Conceptually, private guarantees play the same role as an SBA loan guarantee
504 Loans

Established in 1986, the 504 Loan Program provides long-term, fixed-rate financing for major fixed assets, such as real estate, facilities construction or expansion, or other f fixed-asset needs. 504 loans are made through Certified Development Companies (CDCs).

Royalty Financing

Royalty financing is an advance against future product or service sales. The advance is paid back by diverting a percentage of the product or service sales to the investor who issued the advance.

Going Public: Direct public offerings (DPOs) are the direct sale of shares in a company to individual investors. After the shares are sold by the company, investors may or may not trade on a stock market or exchange
Institutional Venture Capital: This type of funding includes venture capital from professionally managed funds that have between $25 million and $1 billion to invest in emerging growth companies .

Whenever an individual goes to secure a business loan he is sure about one thing which is the project he has is worth a loan consideration but what has to be kept in mind is how the complete project is presented for this it is important to prepare a business plan keeping the following details in mind:

Executive Summary: this includes business concept, financial features, financial requirements, current market position and major achievements.
Business Description
Competitive Analysis
Design and development plan: product, market and organizational development
Operations and management plan: The operating expense table, The capital requirements table and The cost of goods table.

Financial Components: Expected Profit and loss, balance sheet, cash flow statements, etc.