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Frequently Asked Questions

30. I know that I have a successful business idea. All I need is money. Why does all this have to be so complicated?

You may "know" that you have a successful idea, but that is not sufficient to obtain a business loan. Banks do not lend a business money based only on your opinion and are naturally cautious when extending loans. If you wish to obtain financing, you have to demonstrate, in writing, that your idea will be successful. This can be accomplished by developing a business plan. In addition to demonstrating business feasibility by developing a good business plan, a lender will also consider other criteria when making a loan decision. Issues such as owner equity contribution, collateral, and credit history are also important factors that determine the outcome of the loan decision.

For more information on small business financing, review "Obtaining a Small Business Loan" and "Can I Qualify for a Loan".


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The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran's status, or disability.