You have a fabulous small business idea, but you need a business loan. You've done all the planning and projections and you have confidence that your business start up is sound. You may be thinking that good ole' dad or good ole' Aunt Betty will front you the investment capital you need for a small business loan. After all, they believe in you, right? Whether or not your family and friends have faith in you is not really the issue at stake here when seeking a small business loan. Unless you are willing to negotiate a partnership with your family, or they simply have extra money they are looking to invest in a sure thing, you may want to consider the potential strain of borrowing money from people you know can put on your relationships. What if your plan does not go according to plan and you are not able to meet your agreement to repay the personal loan?

When you need a small business loan, you could consider hitting up your local banker for funding, but a) maybe your personal credit score will result in a big fat rejection letter from your personal lending institution, or b) maybe you just don't want to put your personal assets (your home where you live, for example) at risk. So, how will you get a small business loan?

Consider this when seeking a small business loan - what we as small business owner often fail to remember when starting up a business is that the act of incorporation with the state means that your business is no longer YOU! Once a business is incorporated, it now is an entity separate from you and despite the fact that you sired and birthed it, it needs to get up and walk on its own and be financially responsible for itself. You go into business to make money, right? So your small business needs not be financially tied to your apron strings once you have filed with the state. You no longer need to be personally liable for financial burdens incurred by the business. Your business needs to get a business loan on its own behalf.

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