Small business loans are being offered by many traditional and alternative lending companies, including online platforms which have been receiving a fair reception from borrowers today. With many options available to choose from, you should know which type of loan to choose, which company to borrow from, and how to apply for it in the most convenient way. So before applying for small business loans, here are 4 things that you should know:
- There are different types of small business loans available depending on your needs.
If your existing business or the business that you are about to start has special requirements, you could go for a 7(a) loan program. Your purposes may include equipment purchases, refinancing, business acquisition, permanent working capital, or business expansion. If you’re only planning to apply for a loan under $50,000, you may consider microloans.
- When looking for a lender/lending company, be sure that they’re credible and outstanding.
With even more options for lenders and lender companies, it is important to screen them as you make your way to an important financial move. With large commercial banks, the process could be a bit slow and you would surely undergo a rigorous application. With lenders guaranteed and approved by Small Business Administration (SBA) such as Centerstone SBA Lending Inc., you could avail of attractive repayment terms with longer amortization term. With peer-to-peer lending platforms, you could undergo a relatively fast process but be sure that it is a legitimate and secure company.
- A good credit history and profile means getting a bigger chance of getting approved.
To qualify for small business loans, you should have a good and strong credit score or history, and a good “character” in relation to your finances. Lenders most likely approve loans of borrowers who have a positive track record and a good payment history, including your promptness and consistency. Also, when you have outstanding loans, be sure to prove that your business income is sufficient to pay existing loans and the ones for approval. The business’ assets and investors are also important to note when applying for small business loans.
- You should be able to state how much you would need and what it is for.
When businesses seek to borrow too much money than what is needed, their applications are most likely being rejected. You should have an accurate estimate of how much money you would need so you wouldn’t end up still paying for a loan even after not needing it anymore. Be concrete with your plans so as to have a clear vision of your actions after having your loan gets approved.
As you plan to apply for a loan, consider Centerstone SBA Lending Inc. for your small business loan needs.
For more information about Centerstone SBA Lending Inc., visit http://www.teamcenterstone.com.