Here are a couple other common loan scenarios:
Startup loan lenders
Equipment loan lenders
Although business loan requirements vary, here are four things lenders MAY consider when reviewing your small business loan application:
Credit score. When you apply for a business loan, a lender will review your personal and business credit scores. They help the lender assess the likelihood you’ll repay your loan. In general, the higher your credit score, the greater your chances of loan approval and receiving a low interest rate.
Collateral and/or personal guarantee.
Some lenders require you to pledge collateral—something of value, such as equipment or inventory—it can seize if you default on the loan. Some lenders may also require a personal guarantee, meaning you have to secure the loan with personal assets, such as your savings, home or other valuable possessions.
Time in business.
A traditional bank typically requires a business to have been in operation for at least two years, while an online lender usually requires only one year. If you’ve been operating your business for less than one year, don’t get discouraged. Some online lenders will approve qualified applicants who have only been in business for six months.
Once you understand your lending options, gather the required documents. A lender will likely ask for these items (some items we provide in the FDD):
- Personal and business tax returns
- Business licenses
- Articles of incorporation
- Personal and business bank statements
- Profit and loss statements
- Financial statements
- Business plan
- Building lease
The final step is to submit your business pre-qualification loan application.
Here’s some information a lender might ask for:
- Your name
- Business name
- Social Security number (SSN)
- Desired loan amount
- Loan purpose
- Business Tax ID
- Annual revenue
Once you submit your application for a pre-approval decision, if your loan is approved, a lender will send you a loan agreement to sign before issuing your funds or a line of credit you can draw from.
Please keep us up-to-date daily on the progress of your application.
And if you have any questions or concerns during this entire process, please do no hesitate to call us at (866) 882-7044, and we will answer any question you may have with the utmost confidence!
