Getting Small Business Loan Information: Understanding Your Options and Increasing Your Chance of Approval

Getting Small Business Loan Information: Understanding Your Options and Increasing Your Chance of Approval

To be successful, every business needs a committed owner, a strong concept, realistic goals, strategy and funding. Using your own money is usually a reasonable option, but the problem with most new business owners is that they don’t have any money of their own. The only real option is to look into getting a small business loan. Financing is usually categorized into several different options, such as debt and equity financing.

The traditional way of getting a business loan from a bank or financial institution is not for everyone – especially if you have no business credit history and your personal credit history is not so good.

However, if you’ve been in business for at least two years, you’ll have a better chance of getting long-term approval from a bank. Even if you are a startup business, there may be options to get a secured loan if you have some kind of collateral. Don’t forget about credit cards, too. It can be beneficial for a small business to establish a line of credit with a financial institution as the company grows as a means to help manage cash flow as long as you make payments on time.

Increase your chances of getting a small business loan

To really increase your chances of approval, show how you intend to use the funds. Any potential investor or lender will want to know why you are seeking funds, how you intend to use the funds and how you plan to pay them back. Break down the things you’ll need money for. Don’t just ask for $10,000. Ask for $5,000 for inventory, $4,500 for equipment, and $500 for advertising. Explain your strategy on how you will get profits and recoup your investment so that you are in a good position to pay it back.

In addition to getting a small business loan, it may be worth considering alternative lenders, such as online lenders, angel investors, crowdfunding, etc.

ALWAYS be upfront and honest. When filling out any kind of application form, be completely honest and try to be as accurate as possible. All details about your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, etc. A single type can actually hurt your chances.

The best place online to try it out getting a small business loan is with US Business Funding. All you have to do is use the free loan calculator to get an instant, FREE estimate, then you can apply for financing through a secure website within minutes. An agent will then contact you to help you figure out what to do next.

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