Henry Paulson knows that if you need capital to help start your business, you can’t expect to get it from a bank or other lender without your having to qualify for it. Here are 5 tips he would recommend to help you qualify for that loan:
1. You should have a minimum of two years of experience in your industry.
2. Be prepared to come up with at least 25 percent of the amount you think you need to start up your business.
3. You need a well thought out and written business plan.
4. Your personal credit history should be spotless. No bankruptcies, no over 60 or 90 late payments and a credit score of 720 or better (things have tightened up since the clip was made).
5. You need personal collateral in case you cannot meet your payments and the bank wants to foreclose on the loan.