Whether your business struggles or you are planning to enlarge, some extra money will always be in hand. If you decided to apply for a business loan, you should know about seven easy steps to get approved.
Step 1: Start before the trouble comes. You never know when problems may occur, so think beforehand about building good relationships with the people at the lender.
Step 2: Decide on what you need. Sometimes experts do not advise applying because of the wrong reasons lying behind. If you decided to apply for a business loan consult a professional who will help you get all the paperwork in order and also understand all the basics of business loans.
Step 3: Decide on how much you need. Try not to get more than you can afford because you will always have today fort. Again, if you have some project and cannot evaluate it properly, consult professionals to get exactly as much money as needed and save on smaller sum.
Step 4: Know your business’s credit score. When you apply for a business loan be ready that business funding company will be interested in your personal credit score too. It means that you need to put everything in order not only inside of the company but also inside of your financial status.
Step 5: Find a lender. There is a great variety of lenders available today, from commercial banks to region specific and alternative lenders. Be ready to the differences between these people and before heading into someone’s office understand which one is most reliable for cooperation.
Step 6: Prepare your application and package. After you fill in your application and hand it to the lender you will be asked to provide a loan package which is basically the paperwork that is submitted in order to apply for a loan. According to experts it will most likely include the following items:
- A business plan for your company and also your resumes (personal resume of a business owner).
- The numbers in terms of financial results and projections (such as balance sheets, profit & loss, and statements about the companies’ cash flow).
- Personal information about your financial status. Make sure to include tax returns for at least three past years.
Keep in mind that your social media accounts will also be checked as parts of the total research.
Step 7: Wait. And the last but not least important tip is to wait. You are very likely to get an answer within a couple of weeks. Make sure to check the status of your application online and to provide your lenders with any required information afterwards.