Business Loan Requirements: 5 Essentials You Should Know

Small business loan form on a wooden table.

For all businesses new and old alike, making sure you have enough money to operate can be a constant source of stress. There are a ton of different ways a business can obtain capital, but one of the most common methods is by applying for a business loan. Preparing a business loan application for the first time can be quite challenging and stressful. Use the five tips below to guide you through the application process and increase your chances of getting approved.

Tell Your Story

Lenders will only approve your loan application if they can be sure you will be able to pay back the loan in the future. It’s your job to document you will have the revenue necessary to do so. The lenders will most likely ask you for bank statements and the purpose of the loan, you can really help paint a better picture of yourself and your business by providing the requested documents in a timely and organized manner. Regardless of what paperwork they ask for, you should make a few essential details clear to the lenders to improve your chances of getting a loan and document your ability to repay the loan. If you have a business plan, be sure it provides the answers to the following questions:

  • What industry do you work in?
  • What does your business do?
  • What will you use the loan for?
  • Who are your clients?
  • When and how do you get paid?
  • What are your margins?
  • Have you managed credit well in the past?
  • Does your business have a documented record of success?

Get Ready for High Expectations

Nowadays, lenders are a little more cautious about who they will lend money to. They follow strict guidelines for qualifications. It is not uncommon for lenders to ask for additional paperwork or to require some kind of collateral. Prepare yourself for the possibility of a rejected application. Though it can be disheartening, it just means you will need to work with your lender to find a way to get approved for the loan and or make all efforts to improve your application strength for the next time you request a loan.

Consult an Accountant

Many business owners struggle to determine how much money to ask for when applying for working capital business loans. New businesses usually require enough funding to support 36 months of growth, so they can become profitable and sustainable. Meet with your accountant to talk about your business’s needs and to determine a realistic amount to ask for. An accountant can also help you create a financial statement and scenario plans.

Improve your Credit

You may be surprised to learn that your personal credit score is taken into account when applying for a business loan. Before applying, obtain a free copy of your credit score to see where you stand. If you need to improve your score, take the time to do it and improve your odds of getting your loan application approved.

Businessman giving a thumbs up sign

Maintain a Relationship with Your Lender

Even after getting a loan, you should work hard to maintain a friendly relationship with your lender. They are responsible for tracking the performance of the loan and the financial health of your business. By maintaining a positive relationship, you can use your lender as a resource and receive guidance on payment solutions, cash management, financing, and more.

To find out more about obtaining capital for your business, contact us at GetMoney.com.

Learning the Credit Score You Need for a Personal Loan

Credit Score expressed by a chart that uses a numerical formula based on an analysis of an individual’s credit files to assess the creditworthiness of that person from Very Poor to Excellent. Protecting your credit score is important and not doing so will make it difficult or more expensive to borrow money.

For many who live paycheck to paycheck and struggle to pay their bills and past debts, taking out a personal loan is an ideal solution to remedy some of their financial woes. However, getting a loan involves a little more than just filling out a form and asking a lender for cash. In addition to other factors, the chances of your approval are dependent on your credit score. Keep reading to learn more about obtaining a personal loan and the credit score you need to do so.

Qualifying for a Personal Loan

Personal loans are offered by banks, credit unions, online lenders and peer-to-peer platforms. Each type has its own set of requirements, interest rates and loan terms. However, all lenders want to be assured that you will be able to pay back the money after borrowing it. This is the main point of the application. You can show your reliability by providing a reasonable credit score and proof of income. With a low credit score, you may be faced with paying a higher interest rate or risk not getting approved at all.

Understanding Your Credit Score

All lenders will review your credit score and credit history when looking over your personal loan application. Every lender has a minimum set of credit requirements, but if you have a low score, you may find it difficult to obtain a personal loan. Scores range from 300 to 850, where a higher number is preferable. Here’s how lenders usually view each score.

  • 300-559 (no or poor credit): Scores in this range usually indicate a damaged credit history caused by defaulted loans or bankruptcy. Applicants with scores in this range are riskier, so loan approvals if approved are offered at a higher-interest rate.
  • 580-669 (fair credit): This range also indicates some past issues with credit history, usually caused by loan defaults or late payments. You will still be able to find a personal loan, but the interest rate will likely be on the high side.
  • 640-739 (good credit): If your score is in this range, you will be able to obtain a personal loan with a decent interest rate.
  • 740-799 (very good credit): Scores in this range can open you up to your choice of lenders and qualify you for favorable interest rates.
  • 800-850 (excellent credit): With excellent credit, you will have your pick of loans to choose from. You’ll also qualify for low-interest rates and be able to borrow larger amounts of money.

Other Factors Lenders Consider

Though your credit score is important, lenders look at a few other factors to get a better idea of your overall financial situation. If you excel in one of these other criteria, a lender may be willing to overlook a low credit score. Lenders will review your income, current debt, repayment history, and any collateral you have to offer.

Businessman Checking Credit Score

How to Get a Personal Loan with Bad Credit

If you have a low credit score, it can seem like the odds are stacked against you. Though you will have a harder time qualifying for a personal loan, it’s not completely impossible. Start your search online to find the best personal loans for bad credit. Compare rates and terms from a few different online lenders so you can find the best one for you.

To learn more about getting a personal loan with bad credit, visit us at GetMoney.com.

Mistakes to Avoid While Getting a Personal Loan

Signing the loan application

Getting a personal loan to consolidate debt, pay off credit cards or tackle that nagging home improvement project is a great way to manage household spending. Other types of loans, like mortgages and car loans, are secured loans used to purchase a very specific item while personal loans can be used for anything. This can mean the qualification guidelines are stricter than for other loans, but there are personal installment loans available for people with poor credit. Whether you’re seeking a loan to pay off other debts or to assist with household cash flow, there are some things you should know as you look for the best personal installment loans for you. Here’s a list of common mistakes some loan seekers make.

Borrowing More than You Can Afford

If you’re consolidating debt or paying off credit cards, a personal loan can make repayment easier. In some cases, you may be able to secure a lower interest rate on the personal loan than the rate you’re paying on your credit cards, saving you money each month over the life of the loan. If, however, you plan to borrow money for a home improvement project or a vacation, carefully consider exactly how much you’ll be able to repay. When you apply for your personal installment loan, you may find you qualify for more than you actually need. Experts recommend only taking a loan for the amount you intend to spend on the project and nothing more.

Applying Only at Local Banks

At one time, a bank was about the only place to get a personal loan. If you needed a loan, you popped into the bank on the corner and spoke with the loan officer. There are so many more options today. Most people are familiar with credit unions, but there are also a variety of online tools that can provide personal loans. Online banks are another avenue, and the latest trend in the loan industry, peer-to-peer lending, makes it possible for you to borrow from strangers, similar to the way Uber allows pedestrians to seek rides and Airbnb helps tourists find lodging.

Not Knowing Your Credit Score before Applying

Repeated credit checks can negatively impact your credit score. Every time you apply for a loan, your credit will be checked. So, increase your odds of finding the right loan by knowing the qualifications for the loan upfront. For instance, if your credit score is 580, seek out lenders and loans designed for people with credit scores in that range to increase your chances for success. If you only apply for loans designed for those with higher scores, you’re likely to see lots of rejection and dings to your credit just from the credit checks.

business negotiation communication. two women confronting each other in boarding room. office workspace

Failing to Negotiate

You may have room to negotiate, so don’t hesitate to ask for the terms you’d like once you’ve been approved. For instance, maybe you’d like to make fewer payments over a shorter amount of time, or you’d like to increase the loan period, giving you lower payments. Some loan programs will allow you to increase or decrease the life of the loan in exchange for slight changes in the interest rate. So, ask questions and negotiate for the best terms possible for your situation.

If you’re looking for a personal installment loan for poor credit or any other situation, visit our personal loans page to get started today.

4 Tips for Requesting a Payday Loan

Worried couple using their laptop to pay their bills at home in the living room

There are situations that inevitably arise where the immediate need for money comes before payday. These situations may include a medical emergency, an overdue bill, or unexpected car trouble. The ability to quickly and easily receive a small loan quickly will allow you to pay this unexpected expense and repay the loan the next time you get paid. Here are four tips that will help you acquire fast payday loans.

1.  Accurately Report Income

Receiving a payday loan is typically pretty easy if you have a steady income from a permanent job. A lender will check your eligibility by ensuring that you can fulfill certain requirements before approving the loan. They’ll specifically want to know how much income you bring in each month. This will provide assurance for them that you will be able to pay back what you’ve borrowed. When providing this information, it’s important to be truthful and accurate.

2.  Know Your Credit Score

Your credit score is less important when applying for a payday loan vs. a larger personal loan; but the lender will still check your score. If you have a higher credit score, this will make it easier to qualify for a loan, as they will be assured of your credit sensitivity and ability to pay it back. However, some services, like GetMoney.com, will still find you a lender to offer even if you don’t have the best credit. Typically, a credit score around 800-900 is “excellent,” a score around 670-700 is “good,” and a score around 580-670 is considered “fair.” Any of these scores should put in a position to qualify for a loan. If you need to improve your credit score, paying down debt and keeping credit balances low will help.

3.  Submit Documentation on Time

When you apply for a loan, there are certain documentations that must be filled out before it can be approved. Lenders prefer borrowers that are easy to work with and provide assurance that they will pay back the money they borrow. Returning the completed required documentation on time will provide this assurance to the lender that you are easy to work with and will repay your loan during the expected period. This can greatly increase your chances of securing the loan, allowing you to pay what expenses are needed. When you receive the documentation, you should immediately check the dates that they should be completed and returned so that you know when you must have them finished.

Happy excited successful businesswoman triumphing with laptop

4.  Request a Fraction of Your Monthly Income

When you request a loan, it’s important to consider how much income you will bring in during any given month. Most lenders will not approve you for a payday loan for more than the amount you earn monthly. The lower the figure you request, the more likely it is that it will be approved, as they will be assured that you’re able to pay it back. It’s recommended that you only ask for a fraction of your monthly income.

You never know when unexpected bills are going to come up. These tips will make it easier for you to obtain fast payday loans so that you can pay that expense and avoid any additional trouble. If you need a payday loan right away, request one through GetMoney.com online today! We welcome all credit types and your loan may be funded in as little as 1 business day.

Reasons Why You Need to Get a Working Capital Loan

Woman on Phone

Are you looking for a way to jump start cash flow into your small business? Have you considered working capital business loans? These types of small business loans help you get the cash you need to purchase equipment, purchase marketing materials, and more. Keep reading to learn more about why a working capital loan is a good idea for your business.

Increase Your Cash Flow

Small businesses don’t have big investors funding their start-up needs like paying employees’ salaries or buying equipment. Many small business owners also don’t have a lot of extra money to put into growing the business, especially if you used your savings to get the business started. A small business working capital loan gets cash in your business within a few days.

Great for Payment Delays

Depending on the type of business you run, you might not get paid by your customers right away. If you run a business that invoices customers and gives them 30 days to pay, you might run into problems if a customer doesn’t pay their bill on time. Working capital loans give you some breathing room. They allow you to continue paying your bills and running your business while you wait for your customers to get those invoices paid.

Increase Inventory Levels

Do you run a retail business? If so, it’s essential that you have a full inventory of stocked goods for your customers. Businesses that don’t have the money to restock their inventory lose customers. In today’s world of instant gratification and 2-day free shipping from retail giants, you don’t want to give potential customers an excuse to go elsewhere. Capital loans keep your stockroom full whether virtual or stone and mortar. Remember, happy customers are repeat customers.

Equipment Purchases

Businesses thrive when their equipment works for them, not against them. What happens if you have a piece of equipment that breaks a week before a major T-shirt order is due? If you need a new screen printing press, but you don’t have that expense budgeted for this quarter, what will you do? These types of loans are perfect for covering these costs in the interim.

People on Laptop

How to Find the Best Working Capital Business Loans

Most people begin searching for a working capital loan online. This is a great place to start, but with so many options, you might feel overwhelmed. How do you find the best loan? Look for products that offer the following:

  • Flexible guidelines that accept all credit ratings
  • Fast funding so you don’t have to wait long to get cash flowing into your business
  • Refinancing opportunities if you can’t pay off the loan by the end of the term
  • Low rate loans
  • Capital loan products that meet your financial needs

When you decide to borrow money, think about how much you need to grow your business and when you’ll be able to pay back the loan. Capital loans can be as little as $5,000 or as much as $5 million with repayment terms up to 10 years. Think carefully about how much you need and the costs required to repay the loan.

If you’re looking for smart working capital loans, contact Getmoney.com to learn more about all business loan products today!

Installment Loans: Everything You Need to Know

Guy with Wallet

Do you have a personal cash flow problem? Small installment loans are useful when you need extra money to pay an unexpected expense, and payday isn’t as close as you need it to be. If this is your first time considering one of these loan products, you probably have questions. Continue reading to learn how these short-term loans work and how to qualify for funding.

Repayment Benefits of Installment Products

Many people assume short-term installment lending is the same as payday lending. While both of these options get you cash in hand fast, the repayment options differ. With payday loans, you’re required to pay back the loan the next time you get paid. However, that’s not always possible, especially if you’re dealing with an expensive emergency. Installment products take away the stress of repaying a large lump sum in 7-14 days. Instead, these loans are repaid a little at a time over a longer period.

Do I Need Collateral?

Personal installment loans do not require collateral. Some lenders require you to give them your banking information so payments can automatically be collected on their due dates. However, this isn’t an across-the-board requirement. It depends on the lender and how they handle the loan repayment option. Loans that don’t require collateral let you get the cash you need without using a car or other piece of property to secure the loan.

Prepayment Options

The best installment loans let you pay off your loan as early as you want. When applying for one of these loans, make sure you understand the payment schedule and what your prepayment options are. In some cases, lenders will charge a penalty for paying off the loan early. They do this to recoup as much interest on the loan as possible. Prepayment is great for you, but not for lenders, because they don’t make as much off the loan.

Be Clear on Payment Due Dates

Most short-term loans are due according to your pay schedule. The amount will either be debited from your account or you’ll be required to send in the payment to a physical location. Make sure you have money in your account the day it’s supposed to be debited to avoid additional fees from your bank such as overdraft fees.

Online Shopping

How to Apply for Loans

Today you can apply for most installment loans online. Each lender has different requirements for documentation. Some loans can be started and finished completely online, while others may require you to fax documentation like pay stubs and bank information. When giving out your personal banking information, make sure that the company is reputable and licensed to fund short-term loans in your state.

Credit Criteria for Installment Lending

The good news is that credit criteria for small loans isn’t as strict as applying for credit through traditional banking institutions. In some cases, the lender might pull a consumer credit report to see if you have any other short-term loans out and the payment history of those loans. If you’re looking for the best installment loans with higher approval rates, choose a lender than offers small loans under $500. This amount is easier to pay back, and you pay less in interest.

If you need a short-term loan for an emergency, contact Get Money to get cash in your bank account as fast as possible.

4 Payday Loan Myths Debunked

Guy Signs Contract

Fast payday loans are a great way to get the money you need, no matter when payday is. Typically, these loans advance you the cash that you’re expecting to receive on your next check. Depending on the terms of the loan, you’ll repay the loan within a few days or weeks. This is an excellent way to stay on top of bills or keep yourself afloat before payday. Unfortunately, these loans are often misunderstood. Don’t let yourself fall victim to the rumors surrounding payday loans. Instead, learn the facts needed to debunk those common myths.

Payday Loans Are Only for Those Who Are Struggling

While payday loans are a great help for those who are struggling financially, people in all kinds of financial situations can benefit. In fact, middle-class individuals make up the majority of those applying for payday loans. Many people use these loans to cover unexpected expenses or emergencies that may occur before their next payday. No matter what situation you’re in, a payday loan could be the solution you’re looking for.

Payday Loans Often Carry Hidden Fees

This couldn’t be further from the truth. While many may think that their lender is tacking on extra fees, rest assured that that would be illegal. Because of the Truth in Lending Act, lenders are required to be completely transparent in the terms and costs involved with a loan; this includes payday loans. There may be fees associated with your initial loan, but they will be presented to you from the very beginning. All of the terms and conditions of your payday loan should be included in the documents that you sign once the loan is disbursed.

You Must Have a High Credit Score

If you haven’t considered a payday loan simply because of a low credit score, you could be missing out. Most lenders don’t require you to have good credit in order to apply. In all honesty, most lenders don’t require you to have any credit in order to be a payday loan candidate. As long as you have proof of income and a bank account, it’s simple to qualify — there’s no credit check needed.

Credit Card

The Fees Are High

Many assume that the fees associated with a payday loan are extremely high. Some even assume that it’s less expensive to pay any overdraft fees that they may incur. Typically, you’ll pay a flat fee based on the amount of money that you borrow for a payday loan. If you decide to risk overdraft fees instead, you’ll pay a hefty fee per transaction. It’s much less expensive to simply pay a one-time fee.

Now that you know the truth, there shouldn’t be anything standing in your way. Whether you’re facing a medical emergency or looking for a little bit of extra cash for the weekend, quick payday loans are a great option for you. In a matter of minutes, you can have the money you need to tide you over until your next payday. To get the money you need quickly and safely, learn more about Get Money’s fast payday loans by visiting them online today.

Key Questions to Ask Before Getting a Personal Installment Loan

Calculator

Whether you’re looking to consolidate credit card debt or go on a relaxing vacation, an installment loan is a great way to get the money that you need. With so many lenders willing to give you the cash that you need, it’s important that you ask the right questions to ensure that you’re making the right decision. Use this list to ensure that you understand the terms of online personal loans.

What Are the Terms?

When determining whether or not a loan is the right option for you, it’s important to know whether or not you have the ability to pay it off. Your loan will be broken up into monthly payments over an extended period of time. Before you sign a loan agreement, review these terms. If the terms of the loan state that you must repay the loan within two weeks, you need to be able to comply. If you can’t, you risk defaulting on the loan, which can result in future financial problems. Understanding the length of time you have to repay the entire loaned amount is the first step in determining whether or not certain loan options are right for you.

What Is the Interest Rate?

Typically, lenders attach an interest rate to the amount of money they’re loaning you. In some cases, this interest rate is based on the amount that you’re loaned or your credit score. The better your credit score, the less interest you’ll pay on the loan. The interest rate on your loan is an important number to note. It represents the percentage of your loan that you’ll be paying back to the lender over time. The higher your interest rate is, the more money you’ll end up repaying in the long run. If you don’t qualify for a low interest rate, consider raising your credit score before applying for a loan. You can also have someone co-sign on your loan, which may lock in a lower interest rate, too.

Are There Pre-Payment Fees?

Some lenders apply penalties to loans that are paid off early. This is because the interest that is applied to your loan helps to fund the loan. If the loan is paid off early, it could cost the lender money. Not all loans are structured this way, though. Before you sign loan documents, make sure you’re aware of any of these types of fees. Otherwise, you could be blindsided if you decide to pay your loan off early.

Woman in Chair

Is Collateral Required?

Depending on the type of loan you decide to apply for, collateral may be needed. These types of loans are known as “secured” loans. Secured loans require the person being loaned the money to offer some sort of collateral for the money they’re being given. This collateral could be the title of a car or a home mortgage. If the person defaults on this loan, then the lender gets to keep the car or the home to pay off the debt owed.

You should thoroughly understand the conditions of your loan before you sign the documents. By asking the hard questions up front, you avoid any surprise fees. In no time, you’ll have the money you need and terms that you can follow. If you’re looking for the best online personal loans, visit www.getmoney.com today!