How to get a small business loan
A small business needs capital if it is to go anywhere. For many business owners, this means applying for a small business loan. This is indeed a stressful process, but it does get easier when you can break it down into the following steps.
Decide Why You Need a Small Business Loan
Lenders will ask you why you need a loan for your business, so you need to have a good answer ready to go. Your reasons almost always have to do with starting your business, managing day-to-day expenses, helping your business grow, or to have a safety cushion in case things don’t go according to plan. Your reasons might be more specific than that, but they can usually be placed into one of these four categories.
Decide What Small Business Loan is Right for You
There are many different small business loans available, and it will be up to you to decide which one is right for you based on your business’s needs. It’s almost impossible to get a traditional loan if you’re just starting your business, so be prepared to turn to alternative lenders. You’ll have much better luck securing a loan after you’ve been in business for at least a year.
Find the Right Lender
If you have good credit and can provide collateral, you may be able to get a loan from a traditional bank. These can have lower APRs, but the application process can be longer than that of an alternative lender. If you have bad credit or you’ve been in business for less than a year, alternative lenders are more than likely a viable option for business owners. Alternative lenders have more flexibility than a traditional lender when it come to credit and the age of your business. Their financial solutions may have higher APRs than traditional banks, but they are more likely to give approval to a new businesses in a timely fashion.
Find Out if You Qualify
Once you’ve submitted your application and the other appropriate documents, all that is left is to find out if you qualify for your loan. This will depend on your credit score, the length of time you’ve been in business, and whether you make enough money to cover the payments.
For more information about small business loans and to find out how they can benefit your business, contact Trihawk Capital today.
