Learning how to apply for a small business loan can be difficult – even if you want to apply online. Different lenders ask for information in different ways, but having an idea of what they’ll likely ask for so that you can prepare is a step in the right direction. Every lender wants to see your company’s financial statements and your own credit report. It helps to have a detailed analysis of how you plan to spend the money you are requesting to loan as well.
Regardless of anything, the longer you’ve been in business and the better your credit score, the more loans will be available to you, and the easier it will be to apply and be approved. If you have poor credit history or only little credit history, you will want to look into short-term loans.They are set up similarly to medium-term loans, except that they are shorter and offer smaller amounts of capital. You will be expected to pay it back over a short term, usually from 3 to 18 months.
Hopefully, you’ll be able to pay it all back within a short period. Like with larger loans, you’ll be expected to demonstrate that your business plan will be good enough to guarantee profits. The good news about short-term loans is that the qualification process is less difficult so you’ll have a better chance of approval. Just keep in mind that the interest rate will probably be higher if your credit isn’t great.
If you’re just starting out, you might also want to look into start-up loans. These can have interest rates ranging from 7% to 30%, with terms from one to five years. To apply for small business loan for a start-up, check with private lenders. A start-up loan might also serve as a precursor to seeking extra funding from venture capital groups or “angel investors”. If you can create a really unique, attractive marketing plan, consider crowd funding websites as well.
Reasons to Apply for Small Business Loan
When applying for small business loans from online lenders, you’ll probably be asked to select a reason why you need the money during the application process. Viable reasons include:
• Buying new or used equipment for your business
• Purchasing inventory to sell
• refinancing debt
• Hiring new employees
• Creating “bridge loan” for construction project
• For taxes
• Other reason
If you have another reason why you need money for your small business, you might be required to enter a specific reason. The more details you can give about your business plan and how exactly you are going to use the money, the better.
So, what website should you turn to if you want to apply for small business loan? It’s a good idea to start with US Business Funding. It’s Business Accredited with BBB and has 95% approval rates!