Getting a Small Business Loan Info: Understanding the Options and Increasing Your Chance of Approval
In order to be successful, any business needs a committed owner, strong concept, realistic goals, strategy, and financing. Using your own money is usually a wise option, but the problem with most new business owners is that they don’t have their own money. The only real option is to look into getting a small business loan. Financing is typically categorized into a couple of different options, such as debt and equity financing.
The traditional route of getting a business loan from a bank or financial institution is not for everyone – especially if you lack a business credit history and your own personal credit history isn’t all that great.
However, if you’ve had a business going for at least two years, you’ll have a better chance of getting approved for a long from a bank. Even if you are a start-up, there might be options for you to get a secured loan if you have some type of collateral. Don’t forget about credit cards, either. It can be beneficial for a small business to establish a line of credit with a financial institution as the company grows as a means to help manage cash flow, just as long as you make payments on time.
Increase Your Chances of Getting a Small Business Loan
To really increase your chances of getting approved, demonstrate how you intend to use the funds. Any potential investor or lender will absolutely want an understanding of why you are looking for funds, how you intend to use the funds, and how you plan to pay them back. Break down the things you will need money for. Don’t just ask for $10,000. Ask for $5,000 for inventory, $4,500 for equipment, and $500 for advertising. Explain your strategy on how you will get profits and make returns on your investment so that you will be in a good position to pay them back.
In addition to getting a small business loan, it might be worth consideration alternative lenders as well, such as online lenders, angel investors, crowdfunding, etc.
ALWAYS be upfront and honest. When filling out any type of application form, be completely honest and try to be as accurate as possible. All of the details regarding your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, and so forth. One single type could actually hurt your chances.
The best place online to try getting a small business loan is with US Business Funding. All you have to do is use the free loan calculator to receive an instant, FREE estimate, and then you can apply for funding through a secure website within minutes. An agent will then get in contact with you to help you understand what to do next.