Who Qualifies for Small Business Loans

Small Business Loans

Today, we will be discussing the qualifications needed for small business loans. There are many different sources of funding. The source you seek out will affect your ability to qualify, greatly. We will discuss this topic in context, in today’s article.

The perfect candidate for small business loans, from the perspective of a traditional bank, has the following qualities: One is an individual having impeccable personal credit with few to no missed payments. Even a couple of missed payments can call your character into question, at least as far as major banks are concerned. This is especially true if you miss payments such as child support payments, mortgage payments, and other necessary payments.

Additionally, having a high business credit score is useful, but it’s not necessary. You will also need to have a strong personal and business income history, going back several years. Banks like to see that you are able to repay your loan under all circumstances.

The perfect candidate for small business loans from nontraditional lenders is a very different type of person. These lenders are more interested in entrepreneurial endeavors. They will look at your company in the context of its relative strength in the industry you are operating in.

If they are not directly associated with your industry, they will often have consultants from your industry to provide further feedback. They are taking on a greater amount of risk since they do not have the same stringent credit and income requirements. As such, you will pay a higher rate of interest from this lending source.

The perfect candidate for small business loans, from the perspective of a traditional bank, has the following qualities: One is an individual having impeccable personal credit with few to no missed payments. Even a couple of missed payments can call your character into question, at least as far as major banks are concerned. This is especially true if you miss payments such as child support payments, mortgage payments, and other necessary payments.

Additionally, having a high business credit score is useful, but it’s not necessary. You will also need to have a strong personal and business income history, going back several years. Banks like to see that you are able to repay your loan under all circumstances.

The perfect candidate for small business loans from nontraditional lenders is a very different type of person. These lenders are more interested in entrepreneurial endeavors. They will look at your company in the context of its relative strength in the industry you are operating in.

If they are not directly associated with your industry, they will often have consultants from your industry to provide further feedback. They are taking on a greater amount of risk since they do not have the same stringent credit and income requirements. As such, you will pay a higher rate of interest from this lending source.

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Who Qualifies for Small Business Loans was last modified: November 8th, 2011 by Amit Kraidman
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