When you’re in need of capital to grow your small business, look no further than a small business loan. You may be hesitant to apply for one because you’ve heard the process is tedious and time-consuming — and it is, when you use a traditional financing source like a bank. However, if you seek out an alternative lender instead, the process of getting a small business loan becomes more streamlined and simple. Just make sure that you’re prepared first, by following these five tips.
- Get all your required documents in order and updated. This typically includes your business plan, income tax returns, financial statements, legal documents, etc. Basically, you need documentation proving that your business is legal and profitable.
- Make sure you have a good credit rating. Over time, you’ve hopefully been building up your credit rating through punctual repayment of your debts. Things like bankruptcies, foreclosures, and debt in collections can impact your ability to get a small business loan. Before applying for your loan, get a personal and business credit report.
- Be clear about why you need the loan. Is it to buy property? Inventory? Hire more help? Be prepared to justify those needs to your lender and tell them exactly how their money will be spent.
- Prove that the business has adequate cash flow. One of the biggest things any lender looks for when evaluating you for a loan is your ability to repay it. This is where those documents like the business plan, tax returns, and financial statements come in. Demonstrate to the lender that your business has enough cash flow to be able to afford the monthly repayments.
- Give them evidence that you’re a skilled business owner. If the lender is confident in your skills, ambition, and drive, you’ll be more likely to land good rates on your small business loan. Describe your background and skills, and show that you have what it takes to succeed.
Alternative lending is the best way to get an easy, headache-free small business loan. Call a qualified lender to explore your options today.