So you started a business or you’ve been in your business for quite some time and now you are ready to take it to the next level but growth takes capital, and that often means securing a small business loan. The money is out there, but to boost your chances for success, you’ll have to figure out how to show that your business is robust and have an strategy. You know the old saying “forewarned is forearmed”.
1. Fix any errors in your credit report.
Keep in mind that credit bureaus have up to 30 days to resolve an issue. So it’s better if you wait until the bureaus resolve the dispute to apply for a loan.
2. Start the process early.
A good idea is to apply for a business loan well before you need it. Loans guaranteed through the SBA typically take 45 to 60 days for approval. And it may seem like not such a good idea, but apply for a loan when your business is doing well: The sad reality is that it’s a bit hard to get funding when you’re having a rough time nevertheless there are always other options besides an SBA loan.
3. Calculate how much you want to borrow in advance.
While this is a fair question, it’s best if you have a number in mind not only that but explain how it will be used and exactly how it will be repaid. That way, they know you’ve done your homework.”
4. Get your documents ready.
There will be a few documents that your lender will want to look at : 3 years of business tax returns, Business and Personal Credit Report, 3 years + Year to Date Business Financial Statements, Personal Financial Statement and Collateral. Although each lender has its own necessities so some may ask for more documents but the ones we mentioned above are some of the most common ones. Have these documents ready so the process can go smoothly.
There are a lot of resources available for finding a small business loan. But this quick guide compiles the basics of what you need to know about securing a loan, and helps you apply to the best lenders.
National Commercial Property loans offers Commercial Property loans in all 50 states. Contact us to discuss your loan requirements.
