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Applying for a Small Business Loan

  • Financing|
Published: 05/30/2018

Starting a small business is exciting. You can finally turn your ideas into an actual product or service. You can finally break free of your restricting day job. You can finally take control. There are a lot of benefits to starting and operating your own business, but it’s not without its challenges either. One of the biggest challenges of starting a business or keeping your business going is getting the capital or funds you need to get off the ground or keep things running smoothly.

Whether you’re in need of money to get started or need funds to help with new equipment and inventory, a small business loan is a great way to get the money you need. If you’re considering taking out a small business loan, here are the steps you’ll need to take to get the funding you need.

The Traditional Way

  1. The first thing you’ll need to do is learn about all of the different loan options out there. “Small Business Loan” is a term that covers a few different types of loans; all are unique and some may be a better option for you than others. You’ll need to determine whether you want a small business line of credit, accounts receivable financing, a small business term loan, an SBA small business loan, etc.
  2. Once you know what kind of loan you want, you’ll need to check your credit score. Your credit score can determine what kind of a percentage rate you’ll receive, or if you’ll qualify for the loan you need at all. If your credit score isn’t where it needs to be to qualify for the loan you need, you may have to take some time and work at bringing it up.
  3. After you’ve looked at or brought up your credit score to where it needs to be, you’ll need to sit down and determine why you need the loan and exactly how much you’re going to need. When you go to a lender and ask for money, they’re going to want you to explain exactly how the funds are going to be used, and, of course, they’ll need to know the exact amount you expect to receive.
  4. Next, you’ll need to do your research on all of the available lenders. There are a multitude of different lenders out there, some of whom specialize in different kinds of loans. Don’t be afraid to call around and ask about general rates to see which lender will be the best fit for you and your business. You don’t have to go with the first lender you come across or the one you’ve heard about most on the radio.
  5. After you’ve decided on a lender, you’ll need to start gathering documents and information. When you go to sit down with your lender, you’ll need things like financial statements and accounting records, depending on the size of your loan. You’ll also need detailed information about your business from the name and tax ID to the legal structure, business plan, and financial projections. Make sure everything is in order and accurate since your lender will want to review the information thoroughly.
  6. Now you’ll be ready to apply for your loan. You can go and meet with your lender, submit all of the documents you need and request the money you need to get going or keep things running smoothly. Your lender will review and let you know whether or not you qualify—once approved, you’ll be able to sign an agreement and get the money you need.
  7. Once approved, be sure to read over the contract carefully before you sign. It’s important you fully understand what it is you’re agreeing to. The contract should have everything from the percentage rate to the terms of lending and repayment, so it’ll be important you understand and agree to all of that before taking the final step and signing.

The Easy Way

Although it is thorough and comprehensive, the traditional small business loan application process is long and tedious, and it can take quite a long time before you’ll hear back about whether or not you’ve been approved. Even if you are approved, it can still take far too long before you get the funding you need, which can be harmful to your business.

That’s where we come in. Our technology streamlines both the approval and funding process, making it easier for both lenders to get qualified loan applicants and applicants to find easier, faster funding. If you need help finding a lender for a small business loan or streamlining the process, contact us today. We’re always available for a call at 877-358-4595, and would love to answer your questions and guide you toward the best loan option for your business.

What kinds of small business loans are you interested in and how would one benefit your company?

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