What Do You Need to Get a Business Loan?
The answer to this question is different if you get a business loan from a bank, or if you decide to apply for online business loans. Historically, banks have been much less likely to grant business loans and they also require more paperwork to apply for a business loan.
Online business loans are easier to apply for and, according to the U.S. Small Business Administration, the following items are what you need to get a business loan. Although not all lenders will require these documents, it is safe to have them all ready and organized before applying.
-A business plan
-Personal credit report
-Business credit report
-Bank statements for at least 1 year
-Business licenses, registrations and permits if applicable
-Contracts with third parties, leases and agreements
How to Get a Business Loan
Again, the U.S. Small Business Administration has a great guide that walks entrepreneurs through how to get a business loan. Rather than walk through that article, Fast and Easy Funds has this to say on the matter: you need to qualify, it’s that simple. Here are a few tips:
1.Start Early – The longer you wait to get a business loan, the more likely you are to make a mistake or choose a terrible online business lender. Start looking for online business loans before you are desperate!
2. Be Prepared – The vast majority of small businesses are not prepared to get a business loan, and that is because they believe that getting a loan is simple. When you apply for a business loan from a bank, you are going to need a considerable amount of paperwork. Applying for online business loans is remarkably easier, but you will still need to have your documentation ready.
3. Have a Backup Plan – Don’t rely on the loan to save the day. You should have a plan if you cannot get a business loan, and if you are in such dire strains that your business will close without the loan, then you need to examine your company; it may be time to start over again.
Where to Get a Business Loan
Where you get a business loan will make all the difference. Proactive and smart entrepreneurs are looking at online business lenders before they need them. Banks, credit unions, and major corporate lenders are going to require more effort on your part. Many loans are rejected because of incomplete or incomplete applications.
Online business loans are the next evolution in business lending. Online business lenders have a proven track record of soaring profits and growth for clients, and improved loan structures.
When to Get a Business Loan
The loan experts at Fast and Easy Funds have an article that details the 7 sings its time to get a small business loan.
There are a variety of reasons, but they can be summarized by:
-Potential to grow
-Increased inventory demand
-Beating the competition
-New company direction
Whatever the reason you need an online business loan, the capital you need is only a few clicks away.