Need a Small Business Loan? Hereâ€™s What You Need to Know
- October 22, 2020
- Written by : REIL Capital
A small business loan can help your business accomplish a wide variety of needs and goals. Whether are starting, running, or growing, there is a customized option for you.
As a small business owner, you should be aware of the process and all of what is required to obtain a loan prior to applying.
The most important need-to-knows are: what loan is right for your business, how to compare lenders, what documents will most likely be required, and how to increase your chances of getting accepted by the lender.
What Loan is Right For You?
The key is not knowing the best loans, but knowing the best loans for you. With many available options to choose from, you’ll want to be sure you do enough research to determine the small business loan that can benefit you the most.
In order to do this, you’ll want to ask yourself a few questions:
- “How likely am I to qualify for a loan?”
- Things that decide this are your personal and business credit, your financial history in your years of operating a business, and more. If a bank or the SBA has declined you before, then a short-term loan may be the best option for you.
- “How quickly do I need the loan?”
- If your needs are a bit more urgent and you are in need of quick financing, then you may want to look into small business express loans with an online lender.
- “What kind of payment terms are you able to work with?”
- If you may need a longer and lower repayment terms for your loan, then you will need to research options such as term loans versus those with a tighter time frame like a revolving line of credit.
How to Compare Lenders:
Next, you’ll choose if you’d like to work with a traditional bank or an online lender.
Work with an online lender if you want to:
- Save time in the application process
- Increase your chances of qualifying
- Have flexible payment options
- Receive financing faster
Work with a bank if you can provide collateral, you have good credit, or you don’t need low or long repayment terms.
What Documents Will Most Likely Be Required?
Knowing the required documents ahead of time can save you from hours of last-minute chaos. This average list of requirements will help you get organized and prepare for your application.
- Credit scores: both your personal and your business
- Cash flow and bank statements
- Tax returns
- Profit and loss statements and balance sheet
- Potentially collateral
Although, this is not the full list of must-haves, as every lender is different! Still if you’re curious as to what our simple requirements are, head over to our loan options here.
How to Increase Your Chances of Qualifying:
Be clear in your plan for using the loan in your business. It is because lenders look for a well thought-out plan for how to the money will be spent, and most importantly paid back. If you are able to present a clear direction on how funds will be allocated appropriately, you are already on the good list.
Our goal is to help thousands of small businesses succeed. Being small business owners ourselves, we’ve experienced the other side of loans. We understand what a long, detailed process this can be… that’s why we simplified and streamlined the entire thing, saving you time, energy, and headaches.
Work with us and join the REIL Capital family.