Getting a small business loan is essential for many new business owners. Because the economy is still recovering, lenders are still cautious regarding to whom they give loans. Fortunately, business owners who can prove they are low risk applicants should have little trouble being approved. When applying you will be required to provide lenders with specific records and documents, the following of which are some of the most commonly requested.
Company’s Credit History: If your company is new, the lender will primarily look at your credit history. You’ll want that history to be as good as possible. Before applying for a loan, open up a small business credit card, use it and make your monthly payments to establish good credit for your company.
Company’s Financial Records: Prepare your profit and loss statements and budgets so you can show why your business is worthy of getting a loan. If you haven’t been in business for long, make one-year and two-year projections, showing when you expect business to pick up, or even slow down, and the reasons why you expect this to happen.
Your Financial History: Even if your business has established a credit history, lenders want to see how you handle money. If your credit score is below 750, take steps to repair it immediately. Pay your bills on time, pay off old debts and check your credit report to make sure that there are no errors.
Your Experience: Why are you qualified to run the business? Prepare a list of past business projects on which you have worked as well as what you’ve already done to make your business successful.
Available Collateral: If you are applying for a loan that requires collateral, know in advance what you can put up in order to guarantee the loan.
These are the main things you’ll need to prepare. Always be over-prepared so lenders don’t have to ask you too many questions. Show them that you know what you are doing and tell them why you deserve the loan. Don’t waste any time getting started. Get your papers in order and apply for your small business loan today so you can enjoy the freedoms and challenges of being an entrepreneur!
For more information, go to Small Business Loan at http://www.unsecuredbizloan.com/small-business-loan