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:
·
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.
