Money is the lifeline to any business, so whether you are running a business or planning to grow an existing business, secure financing options play a major role, especially in regards to small businesses. It can seem like a daunting task to find financing options, and many small business owners don’t know where to begin the search. Fast and Easy Funds wants to make this task easier, so we have compiled a 5 step guide to prepare and apply for a Fast and Easy, easy term business loan.
- What is the criteria in which Fast and Easy looks for in making small business loans?
In general, in order for banks or private lenders to consider your application for an easy term loan, the requirements are:
- The loan must be proven for sound business purpose. The business must be eligible based on establishment, size, and use of loan proceeds. Generally, the nature of the business is taken into account, however private lending institutes may not need the business to meet this certain criteria.
- The business owner and any existing or potential partners are of good character, have experience, and good personal and/or business credit.
- The ability to pay back the loan or forecast repayment of the term loan. Reasonable to strong collateral is also important, but if strong collateral is not available, most lenders will not decline a request to guarantee a loan if that is the only unfavorable factor.
- Owners must have personal equity investment in the business.
- The information you will need.
Different lenders require different documents, but generally you will need:
- Personal and business credit history
- Personal and business financial statements for existing businesses, as well as projected financial statements
- A strong and detailed business plan
- Projections for cash flow for at least a year
- Personal and written guarantees from each principal owners of the business.
- Set yourself up from the get-go to make the process easier.
Be prepared, thorough, and truthful:
- Choose the lending institute carefully
- Approach the banks or lending institutes that you have already worked with or a current customer of
- Talk to a lending associate and see what documents they require
- Be thorough and bring all documentation they require. Many loans are denied or delayed due to insufficient applications
- Size of an easy term loan.
Financial needs of small businesses vary greatly, so typical also varies. For a Fast and Easy Term loan, we lend up to $500,000 where the national average is around $371,000.
- What associations are there to help?
There are many associations that are there to help businesses that take out easy term loans. One major branch is the Small Business Association (SBA). You can also find a variety of associations to help with loans online.