Course Content
Your Loan Packaging Course
Learn to craft a persuasive loan package to secure financing. This concise course covers essential financial documents, integrating your business plan, understanding credit scores, and presenting your business effectively to meet lender expectations. Gain insights into legal compliance, submission tips, and strategies for engaging with lenders, all aimed at showcasing your business's growth potential.
The Business Entity Course
Navigate the complexities of choosing the right business structure with "The Business Entity Course." This focused course demystifies the process of selecting an entity type—such as LLC, corporation, or partnership—that aligns with your business goals, legal protections, and tax implications. Learn about the advantages and disadvantages of each entity type, the impact on your personal liability, and how your choice affects funding opportunities. This course provides the foundational knowledge needed to make an informed decision on structuring your business for success.
Personal Credit Enhancement Course 101
Boost your financial credibility with the "Personal Credit Enhancement Course 101." This essential course offers strategies to improve your personal credit score, a critical factor in securing business financing. Dive into understanding credit reports, identifying and rectifying errors, and employing tactics to enhance creditworthiness. Learn how personal credit impacts business funding opportunities and master practical steps to elevate your score for better loan terms and access to capital. This course is your guide to building a stronger financial foundation for both personal and business growth.
Business Credit 101
Unlock the potential of your business with "Business Credit 101," a course designed to guide entrepreneurs through the intricacies of establishing and managing business credit. Discover how to create a robust business credit profile that lenders trust, understand the key differences between personal and business credit, and learn strategies for building creditworthiness. This course covers the essentials of business credit reporting agencies, how to secure credit lines, and the impact of credit on your business's funding capabilities. Equip yourself with the knowledge to leverage business credit as a powerful tool for growth and financial stability.
A Bankable Business Plan Course
Transform your vision into a viable financial strategy with "A Bankable Business Plan Course." This comprehensive course guides you through crafting a business plan that not only articulates your business model and market potential but also appeals to investors and lenders. Learn to effectively communicate your business's value proposition, operational plan, and financial projections. Discover the components that make a business plan compelling, including market analysis, competitive edge, and financial forecasts. By the end of this course, you'll have a polished, professional business plan ready to open doors to funding and growth opportunities.
Lender Strategies and Tips Course
Navigate the lending landscape with confidence through the "Lender Strategies and Tips Course." This insightful course equips you with the knowledge to approach lenders effectively, understand their criteria, and improve your chances of loan approval. Delve into the nuances of different financing options, learn how to present your business in the best light, and uncover the secrets to successful loan negotiations. From building strong relationships with banks to preparing for common lender concerns, this course offers practical advice and strategies to secure the financing your business needs to thrive.
Funding Source Overview
Explore the spectrum of funding opportunities with the "Funding Source Overview" course. This essential guide introduces you to the diverse world of business financing, from traditional bank loans and SBA loans to innovative online lending and venture capital. Understand the pros and cons of each funding source, eligibility criteria, and how to align them with your business needs. Gain insights into navigating the application process, optimizing your chances for approval, and strategically choosing the right mix of financing to fuel your business growth. This course is your roadmap to identifying and securing the optimal funding sources for your enterprise.
Become Lender Ready
About Lesson

Why Sole Proprietors Have a Harder Time Getting a Business Loan

According to the Small Business Administration (SBA) 70% of all businesses in the United States are Sole Proprietorships. The vast majority of these small business owners choose Sole Proprietorship for the simple reason that they’re extremely easy to setup: they require minimal paperwork, offer complete autonomy when making business decisions, and enjoy low tax rates and easy tax filing. Also, business losses can be offset by money from other income streams, like a spouse’s earnings or a second job.
But because a sole proprietorship is an unincorporated business, it comes with several disadvantages: the potential for unlimited liabilities, the inability to partner up with someone else, and the connotation of being “less professional” than an incorporated business.
Because it’s usually much trickier for sole proprietors to secure a small business loan, it can be hard for them to scale their businesses. Growth demands a timely infusion of capital, but with few or no assets, investors or banks are more hesitant to approve an application for a business loan.
The Challenges of Getting Financing as a Sole Proprietor
Sole proprietors, by the very nature of their businesses, are the face of their company. (Quite literally, in some cases, like with freelance writers or other independent contractors). Financial lenders see sole proprietors as too risky because there’s no hard separation between business and personal finances and, therefore, they can be held personally responsible for any business debts or other business liabilities.
For some sole proprietors, funding their business directly from their own savings or personal assets is the only option available. Without personal funding, there wouldn’t be a business to operate. This option also means that there’s no need to justify a business plan or convince a bank that you’re an acceptable credit risk.
Unfortunately, while self-financing can offer sole proprietors flexibility and speed, it often proves to be a stumbling block when the need for outside capital almost inevitably arises. Sole proprietorships generally find it difficult to qualify for a bank loan because they’re not seen as “credible” enough. And as a sole proprietor, your business could easily go under if you’re called out for jury duty, get severely sick, or have to deal with a pressing emergency. That’s a big risk for any lender to make. Another popular funding mechanism available to businesses—the sale of an equity stake—is essentially closed off to sole proprietors. Investors willing to commit significant resources to a growing enterprise generally want to own a portion of the company in return for their financial investment. Sole proprietorships can’t take on new owners without losing the “sole” designation, so in the event of a new equity investment, a sole proprietorship would need to evolve into a general partnership or some form of corporation. *** A sole proprietorship has plenty of benefits, but many of the features that make this type of business entity so appealing to business owners can also work against them. That doesn’t mean, though, that outside funding isn’t an option if you’re a sole proprietor seeking to expand. By exploring all available options, including non-traditional funding sources, sole proprietors can usually secure the capital they need to take their business to the next level.