5 Steps to Get Approved for an SBA Loan
From first-time business owners to mid-sized businesses looking to aggressively expand, SBA loans can offer you dynamic financing solutions to position your business in a place to succeed. Don’t let a competitive marketplace keep you from thriving and earning the income you need. If you’re preparing to apply for an SBA loan here are five steps to get approved for your loan.
Schedule Time to Work on Your Application
Just like any other important documentation or interview, it pays to schedule time for your application. Too often small business owners procrastinate and turn in an application without proper planning. By taking the time to schedule steps in the application process months or weeks in advance, you’ll position yourself at the front of the pack.
Research Lending Options
Before you commit to filling out an application, be sure to thoroughly research your lending provider. Each provider has a slightly different application process for the same SBA loan, so choosing your lender carefully can help you enjoy better rates and an easier application.
Build Your Credit Score
One thing all credit applications have in common is a credit score requirement. Applying for SBA loans is easier with a high credit score. If you have little credit or a poor score it can be surprisingly easy to increase your score. Take steps to improve it before your application to increase the chances of getting a quick application approval.
Create a Business Plan
Once you have the loan provider selected and are working to improve your credit score, it’s time to create a business plan. This document should have all your financial statements, financial projections, competitor analyses and other important information to position your company as a viable option. Make your case as clear and backed-up as possible to show your lender that you understand what it takes to start a successful business in your field.
Ask a Professional
Finally, if this is your first loan application, it pays to get some counseling. SBA loans may be easier to receive than other types of business loans for small businesses, but they still require some expertise and effective planning. Receiving advice and assistance on your application from a trained and experienced financial adviser can mean the difference between a rejected application and quick approval for the funding you need. Discover how you can launch your business on the right foot with affordable and flexible loan options.
