1. What do you want? Sounds like an obvious question but you’d be surprised at how many people simply don’t know answer. Take five minutes and write a list of anything and everything you want. Then rank them in order of importance, taking into account that some desires might seem more important than others, but that certain things need to happen first. For instance, you might feel that owning your own home is most important item, but you actually need to work on getting out of debt first. Next, take each item and answer following questions.

2. Why do you want it? Consider carefully what motivates you towards this goal. Is this project your lifelong dream or something that your parents or society pushed onto your shoulders? Make sure you want it for right reasons and not simply because it’s something you think you should want.

3. What’s pay off? Write a list of all benefits of reaching your goal, both emotional and physical. Can’t come up with much? Reconsider why you want this goal at all. This list will play an important part in keeping you motivated and focused when initial excitement about this project wears thin.

4. What needs to happen? Keep pen and paper out. Write a list of every conceivable task that needs to happen to reach your goal. Get as specific as possible down to last detail.

Are you thinking about starting a business but have no money to do it with. Well, you're not alone. This article will tell you basics of borrowing money

A loan is money that is borrowed, and has to be paid back along with interest. If money is borrowed from an institution such as a bank, this is called a commercial loan. Money that is borrowed from a friend or a relative is called a personal loan.

The borrower, or debtor, is business or individual that takes out loan. The lender, or creditor, is source from which money was borrowed. The term, or period, is time that is specified during which borrower has to use money borrowed before he has to repay loan. The maturity of a loan is when a loan term reaches its end. The Principal is amount that is borrowed from lender.

When you or your business borrows money, lender wants to know when they will get their money back. Keep this in mind when you are looking for a lending source.

If business is not able to repay loan, lending source has a right to legally come after assets to recoup it's money. The extent to which you are personally liable depends on business structure your business is operating under.

If you are approved for a loan, that you will have to make scheduled payments (typically on monthly basis) plus interest. A loan can sometimes be set up as a balloon loan. A balloon loan will typically require smaller initial payments and one lump sum of what was borrowed as final payment at end of term.

Borrowing from Institutions

Business loans generally fall into two main categories: short term and long term loans. A short term loan is a loan that is to be payed back within one year. Examples of short term loans include:

• Working capital loans
• Accounts receivable loans
• Lines of credit

• an expansion of a business
• the purchase of equipment
• real estate