The beginning phase (first six months or so) of every business is very hectic stage in owning a business. This is the time you implement your business strategy to assure that you are on the right track to a successful business.
After a month or so, you start to see the potential of your business and consider expanding, by adding more funds into marketing or hiring more employees. At this point, you would want to consider applying for a small business loan.
Now, getting a loan for a small business could seem to be a bit difficult, and well it definitely can be if you haven’t done your homework on lenders.
Don’t worry though, because today we are here to provide you with a few tips that are almost always guaranteed to work and help improve your chances of getting a small business loan.
Prepare Ahead of Time
If you are looking for same day funding, or looking to get funded ASAP, it is good to be prepared ahead of time.
Focus on your business, your plans and how you plan on implementing them, that way you have an idea of how much you are looking to borrow and when you would like to pay it back by.
Have your basic business information prepared, and show business revenue for the last three months by providing business bank statements, that way you can apply with a few lenders and see who provides you with the best rates and terms.
Save Money Even Before Taking Loan
Have you heard the term “It’s always better to invest in your business with other peoples money?” It’s true.
Sometimes its best to use an investor or get a loan to pay back versus going “all-in” with your savings. This provided you with funds that are liquid for you to utilize, while still being able to pay back your loan based on the term.
Also, if the lender knows you have the funds to pay it back, chances you will get approved for the amount your looking for are much higher and you know that you wont be in debt at the end of the day, when able to pay it off.
Once you have received funding by a lender who provides the terms you were looking for, in a quick time span, establish that relationship!
Once you have paid back loans, lenders will typically provide you “better rates” as an existing customer, as they know that you have and are capable of paying off your debt. Matter of fact, this will help you with most lenders in general, when showing a paid in full receipt.
Establish a relationship, so you wont ever be in a position where you will need cash-flow and not have it available in the time needed. Lenders love client renewals, so definitely use that to your advantage to get a great rate!
These are just a few tips that can help you get your applications accepted. So, now without wasting any more time, use these tips and we assure you that you won’t be disappointed with the results.
