Applying for a small business loan can seem incredibly overwhelming at first, but the process doesn’t have to be. Here are eight tips to help you secure the perfect loan.
Know Your Needs
Sit down, think through, and write out your business needs: why you need a loan, for how much, and for how long. Make a budget and be very specific about your intentions for the money and how this loan will help you achieve specific goals or meet a specific need.
Know Your Business Credit Score
While the lenders for your loan will run your personal credit score for your small business loan, they will also look at your business’ credit score. Knowing both put you in the best position.
Research and Compare Lenders
You want the best lender for you and your business. Fully research the process, requirements, and product options before choosing a financial institution.
Have Your Business Finances In Hand
Lenders want to see your sales, operations costs and that you, not only qualify for the amount you’re asking but that you have the ability to pay them back.
It Might Be Best to Wait
As mentioned above, lenders want to see all of your finances. If you are just starting out, it might be better and easier to wait a few months. Waiting will give you the opportunity to build the revenue and credit that lenders are looking for.
Be Honest About Your Debt
If you have existing debt, incorporate it into your financial plan and be upfront about it with your lender. This shows them that you’re responsible and realistic.
Responding promptly to all correspondence and making sure you provide any documents or references they may need as soon as possible will speed up the process.
Although you may need the money now, the process for obtaining a small business loan takes time. Be realistic and easy to work with so that lenders want to help you in the future.
For more information and advice about securing a small business loan for your company, contact GP Solutions today.