No matter why your business needs a loan because the application process and the procedure in general is 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 advice to the business beginners about their loan application.
1. What’s Your Story?
If you read a little more about business loans and application process you will see several basic things approval depends on. But according to experts from ThinkingCapital Business Loans 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 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 your capability of repaying the loan. It is extra precaution measures that assure the borrower that you will re-pay the loan.
According to statistics if you are willing to take the loan secured by collateral you also get higher chances for 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
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 on the interest rate you can get. It means that before you head to the borrower’s office you should make your credit score look attractive. 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 back. Some people think that all this information is not required if you apply online. The truth about business loan online application 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 good relationship with your lender. Not only you will be able to postpone some payments if needed but may even get lower interest rate!