No matter why your business needs a loan because the application process and the procedure, in general, are the same. Whether you own a big corporation or a small home business, you will need to satisfy every requirement and make your business look perfect to be approved. Today we would like to give five simple pieces of advice to business beginners about their loan applications.
1. What’s Your Story?
If you read a little more about https://www.thinkingcapital.ca/“>ThinkingCapital Business Loans</a> Company, it all is interconnected and influenced by one vital factor – your story. If you go to a reputable and reliable bank or borrower, he or she will be interested to hear the story behind your business. If you are asked to tell about your business, it is a good thing because, in this case, you get protected against taking an unpremeditated, of course, under the condition that you are telling the truth.
2. More Paperwork, More Collateral
Be ready that the borrower asks you to provide extra documents to prove you’re repaying the loan. It is extra precaution measures that assure the borrower that you will repay the loan.
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According to statistics, if you are willing to take the loan secured by collateral, you also get higher approval. For collateral, you can use some pieces of equipment or a vehicle.
3. Call Your Accountant
Most frequently, small business and business beginners require up to 36 months of growth support. It means that you need to understand how much money you need to borrow and how much you can afford. If you struggle to determine the sum, you can always call your accountant so that he or she calculates this sum. Moreover, a good accountant will also be able to find different solutions to your situation, and together you will find the most appropriate one.
4. Muscle Up Your Credit
The credit score is one of the most basic things that will determine whether you are approved for a loan or not. Moreover, the ‘wellness’ of it will influence the interest rate you can get. It means that you should make your credit score look attractive before you head to the borrower’s office. The first and foremost thing to do is to repay your loan regularly without any setbacks. Secondly, you must be able to explain the purpose of your business loan application. And third, make sure that you can repay it. Some people think that all this information is not required if you apply online. The truth about <a href=”https://app.thinkingcapital.ca/apply“>business loan online application</a> is that it goes faster and easier, with much less time spent, but it still requires all documents to be in order.
5. Build a Relationship
And the final thing to do is build a good relationship with your lender. Not only will you be able to postpone some payments if needed, but you may even get a lower interest rate!