Are you a small business considering a business loan? The good news is, access to capital for small businesses improved in 2017. According to Dun & Bradstreet, there was a 10% increase in business loans. .
We work with many businesses as they seek to expand and grow, invest for operational efficiencies or to modernize, or convert from equipment rental to ownership to strengthen their business. We want to offer four tips to help your chances for a successful loan application:
Research who you want on your team. If you are looking for an equipment loan but you approach your hometown bank which specializes in personal and auto loans it might not work out. Instead, look for a lender who works with other businesses like yours, understands your needs, and can help you get the loan you need the first time you apply to keep your credit score intact.
Take a hard look at not only your business credit, but your personal credit. Get a copy of your credit report before you fill out your loan application to give yourself time to make sure everything is reported accurately and, where needed, fix discrepancies. If there are any negative items, be prepared to explain them.
Ensure your business bank accounts are in order. It is typical to show three months of banking history but a deeper review may be necessary for larger loan amounts. You want to show that you’ve had a steady deposit stream and have been making your payments on time. That is a good indicator for a lender that you’ll be able to handle repayment.
Fully complete the application. An incomplete application will stop the process before it begins. Make sure that you include any detail requested by your lender to insure a speedy turn around on the credit decision. Your lender will want a full and accurate view of your business and why any past issues are just that – in the past.
Axe Business Funding makes credit decisions based on the full health of the business. A business with a few spots on their credit should still be approved for a loan if they can show recent payment consistency, good bank balances, and health in the overall business you’re investing in. The bottom line is to be prepared and look to work with a lender who understands your business and wants to help you reach your business goals.