Your company needs to apply for a small business loan, but what are banks and lenders really looking for in your application? Do you know what you need to provide, and what steps you can take to increase your chances of getting approved?
Banks and lenders consider several factors when considering an applicant’s loan, and while some may seem obvious, there may be others that you haven’t thought of or wouldn’t think of as important. It’s crucial to do your due diligence in identifying exactly what you need to do, and then how you’re going to get there.
By getting everything in order prior to the meeting with the bank, you have a greater chance of convincing your lender to approve a loan to ultimately expand, update and grow your business!
Key SBA Loan application factors to consider
- Clean up your credit: If you find that your business’ credit score isn’t quite up to par, here are some simple ways to start increasing that score. Begin by simply paying your bills on time, and your credit score will start moving in the right direction.
- Create a solid business plan: A business plan helps a lender understand what your goals are and shows how you plan to get there. Entrepreneur magazine offers some tips and templates to help get you started.
- Show sufficient assets: Banks and lenders want to see that you have solid cash flow and sufficient assets to repay your loan. This gives them the confidence to lend you the money to make improvements for your business.
- Consult an expert: Contact an expert for advice. It could be a representative of the Small Business Administration, or someone from a certified development company like Growth Capital. These experts can help guide you on the right track, getting you in the best shape to get approved for a small business loan.
- Know your options: Is a traditional loan for you, and is your company solid enough that a bank will be confident in approving one? Or is applying for an SBA loan a better option at this time? SBA Loans connect businesses with an SBA loan program that guarantees part of the loan, which could be a great fit depending on your organization.
Resources to assist you in applying for an SBA Loan
There are many resources available to assist you in “fixing” any issues that could have a negative impact on your loan application. The Small Business Administration (SBA), in particular, is extremely helpful when it comes to getting information and educating small business owners.
There are also organizations and mentorship programs, such as SCORE, women’s business centers and organizations that help small businesses. The SBA can help direct you to what is offered in your community.
Get started with your SBA Loan application today
Are you interested in starting your SBA Loan application?
Find the guidance you need to create the strongest application from the experts at Growth Capital. We can help answer any questions you might have, and help you build a custom business plan detailing your company’s growth needs.
Contact our loan experts today at (216) 592-2332 or online.