To get your business off the ground, or to continue operating, you must be able to get the financing you need. It’s not easy to get that money, especially if you don’t have business experience and don’t have a very good credit score. There are things you can do to increase your chances of being approved. Here are some tips on how to apply for a small business loan:

• Write a detailed business plan that explains exactly why you need the funds, how you plan to spend the money, and what you will do to pay it back. The last part is especially important, as you must show that you will be able to make a profit and that through those profits you will be able to repay the lender with interest.

• Research the different types of loans and determine which would be best to apply to. SBA loans are backed by the US Small Business Administration, but generally have strict eligibility requirements. There are term loans offered by financial institutions such as credit unions and banks, and they can range from short-term to long-term solutions. Other options include lines of credit, merchant cash advances, microloans, crowdfunding, etc.

• At some point when you figure out how to apply for a small business loan, you should take the time to review your credit history and score. If your business has been around for less than three years, you probably don’t have much of a business credit history. You may need to use your personal credit history, and if it’s not very good, you may have some trouble getting approved. Check credit reports and consider working with a credit repair agency that will help you eliminate potential errors and fix some problems.

More Tips on Applying for a Small Business Loan

• Compare different offers and terms. Choose at least 3 lenders that seem to offer the ideal terms and conditions for you. If you don’t take the time to review various options, you may miss out on a lower interest rate. Don’t take TOO MANY loans though, as it could hurt your credit score.

• Read reviews of each lender you’re considering to see what other businesses of a similar size to yours are saying about them. Which lender seems to rank well with companies in your industry? Which ones are in a strong financial position?

Now that you know how to apply for a small business loan, start preparing all your information and credit reports and creating a good business plan. Start with a company like US Business Funding, which is rated A+ with the BBB.

Leave a Reply

Your email address will not be published. Required fields are marked *