Basics of Getting a Business Loan

Basics of Getting a Business Loan

Guide to applying for a business loan

Running a small business has many difficulties. Perhaps the most challenging aspect of successfully operating and managing a small business is the financing aspects of the business. Occasionally, you may find your business in a bind and short on cash; or you may be presented with opportunities that could help you expand and grow your market share which require cash capital to capitalize on. So, the million-dollar question is how do you do it? If you don’t have the cash or assets saved up for such events, your options will be limited. You can approach friends and family for a loan (I don’t recommend this), put your business out there and look for an investor / partner that can bring cash to the table, or do it the easy way, apply for a loan or a business line of credit.

guide-business

How you go about getting a business loan is very important.  I suggest you think out of the box and take advantage of the modern tools available to borrowers. Working with a business loan provider like the ones Getmoney.com works with will significantly improve your chances of qualifying and getting approved. Most traditional lenders have very strict lending guidelines; but the getmoney.com system will automatically match you with a lender that offers competitive rates with flexible guidelines.

Step #1: Analyze yourself as a borrower

Prior to applying for a loan you have to review your credit / business credit and tax filings to see how strong of a borrower you are. If you have excellent credit (both personal and business) and show a substantial income on your tax returns, you can apply for a loan the traditional way by going to your local bank. However, if you have any blemishes on your credit or don’t show much of a net profit on your tax returns, you have to consider other options. The other options are not necessarily worse or more expensive, they are just a new way of doing things. For example, you can apply for a loan up to $500K with a couple of clicks on Getmoney.com. They have much quicker application process, more flexible guidelines than most banks, will require much less documents and offer very competitive rates for business lines of credit and business loans.

Step #2 Get Organized

All lenders will require certain documents such as bank statements, tax returns, business licenses, rental agreements and other documents that will determine your credit worthiness as a borrower. I recommend having all these documents organized and ready to go prior to applying for a loan. If you apply for a loan through Getmoney.com, an agent will call you to review your application and documents. Having them ready to handover will definitely expedite the process.

guide-business2

Presentation of documents and future plans

If you are asked for business plans and projections of estimated future growth, be sure to deliver everything in a professional manner. Visual presentations with charts and graphs are a great tool. Remember you have to make sure the underwriter clearly understands what you are trying to do and why it’s a good business model. The clearer the better.

 

21 February 2017 , , , , , , ,

Leave Comment