Get the small business loan you need and deserve after reading this post! We're sharing the 5 tips you need for getting small business startup loans here.
Shockingly, over 80% of businesses fail due to issues with capital and cash flow.
In fact, close to 30% of businesses say that they struggle with securing their required funding.
What can you do to make sure you get the funding you need to ensure your startup or small business is a success?
Many smart entrepreneurs take out small business startup loans.
In this post, we'll share with you our top 5 tips for getting approved for this loan.
If you want to get approved for small business startup loans, you need to find the lender that's not just most likely to approve you, but will also offer you the amount and interest rate you need.
Instead of taking the first offer that comes your way, do a little comparison shopping.
You need to ask potential lenders about the fees associated with your loan in addition to the interest rate.
You'll also need to make sure you bring the required financial documents to each meeting. This will include things like accounts payable/receivable, your cash flow, and more.
If you can get these statements audited by a CPA, all the better.
To increase your chances of getting approved, you'll also need to show lenders a dynamic, detailed business plan.
This should include things like your mission statement, projected growth and sales figures, your employment experience and history, and your target market.
You should also have a clear idea of the costs of paying employees, getting equipment/supplies, and even rent.
Aim to provide lenders with a minimum of 3 years of projections.
You need to clearly state to lenders exactly how much you'll need to borrow, and prove statistical analysis that back up that figure.
This proves to lenders you're serious, trustworthy, and committed to the success of your business. This is a pitch, not a Q&A session.
If you have any outstanding issues with your creditors, now is the time to resolve them.
Know that it can take up to 30 days to resolve these issues, so make sure you start the process as early as you can.
Additionally, take a look at your credit score. If it's strong, now is a good time to apply for your loan. If it's on the weaker side, ask yourself if it's possible to wait until your score is higher before applying.
Pay down any credit card debt or personal debt you can before you apply.
Sometimes, glowing business plans and great credit scores aren't enough.
If possible, come to your lender with assets you are willing to sell off if you hit a bump in the repayment plan.
Think about making equipment, your building, or anything else collateral to increase your chances of getting approved.
Thanks to this post, you have the top tips on how to get approved for small business startup loans.
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