A business loan can open up new opportunities for your company. This post goes over some of the ways you can boost your business’s chances of obtaining one.
Know How Lenders Look at Borrowers
For the purposes of getting a business loan, it’s very helpful to know how lenders will assess your company. For example, your personal and business credit scores and histories will be key factors for lenders.
Additionally, financing writer Marco Carbajo advises that your business’s financial standing will also come into play. That means you should have on hand items such as these:
- Financial statements from the previous year.
- A balance sheet.
- An interim financial statement that covers more recent months.
- A statement covering income and one covering cash flow.
Lenders may also want to look at additional documentation, like your business plan.
Decide on the Loan Type
There are many species of business loans out there. All have unique advantages and disadvantages. For instance, SBA loans offer attractive terms at the cost of a lengthy application process. Alternative lenders may offer faster application processes to less-established businesses. To learn more about the different types of loans out there, check out this guide from Entrepreneur.com.
Applying the Right Way
Once you know what type of business loan you’re after, it’s time to decide on a lender and apply. Research what specific lenders are looking for before putting in an application; for example, if your business doesn’t meet a lender’s credit score requirement, you’ll probably be wasting your time to apply with that lender.
After you’re selected a lender that fits your business’s situation well, then you can move forward with the application process. Approval can take anywhere from a day to six months, depending on the loan type and the specific lender. In the interim, be sure to respond promptly to any further inquiries the lender has.
Whether your company needs a loan or another type of funding, Pendleton Commercial Financing may be able to help. To learn more about what we have to offer, just get in touch.