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How to Get a Small-Business Loan

Among the several challenges of running a small business is getting a loan. Finding and getting approval for small-business loans ca...

How to Get a Small-Business Loan



Among the several challenges of running a small business is getting a loan. Finding and getting approval for small-business loans can be tough, the more prepared you are, the better. Here’s what you need to know when it comes to getting a business loan:


1. Ask yourself, why do I need this loan?
Lenders will ask you this question, be prepared. Your answer will likely fall into one of these four categories:

·         To startup your business
·         For managing day-to-day expenses
·         To grow your business


2. Decide which loan is right for you
Your reasons for needing the loan will determine the type of small-business loan you get. Examples are short-term cash flow loan, a line of credit, accounts receivable financing or a term loan.

3. Find The Best Small-Business Lender
You can get small-business loans from several places, including banks, SBA, nonprofit micro lenders and online lenders.


4. Find Out If You Qualify
·         What's your credit score?
·         How long has your business been operating?
·         Do you make enough money?
·         Can you make the payments?
All these are factors that will determine which loans you’ll qualify for.

5. Get Your Documents Ready And Apply


You might need to submit documents such as tax returns, bank statements, financial statements and legal documents with your application.

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