How to Get a Small Business Loan
If you’re the owner of a small business and you’re looking to get a loan, you may be wondering how to get started. A small business loan can provide much-needed funding to support your company and help it grow and thrive, but the process of securing funding can seem complicated. Luckily, it doesn’t have to be that way! Whether you need a loan to acquire inventory, cover overhead or pay other expenses, there are a few key things you should know. Take a look.
Check Your Eligibility
Before applying for a loan, you’ll want to check your eligibility. In simple terms, this means you can prove to potential lenders that you’re good at handling your money and you’d be a low risk. The process of checking for eligibility can include good credit history and a clean record, as well as demonstrating your business has the cash flow to make monthly payments on time. If you’re applying to a Small Business Administration loan, you may also need to fill out a statement of personal history.
Determine the Amount You’ll Borrow
The amount of money you’ll need to borrow can depend on a number of factors, including your company’s current size, projected growth and operational needs. It’s a good idea to determine how much of a loan you’ll need before applying, as amounts can vary greatly.
Start Your Research
When you’ve determined your eligibility and know how much you’ll need to borrow, you can start looking up potential lenders. Some good places to start searching for the right loan include banks or credit unions, which are traditionally the entry point to business loans and can offer a wide range of financing plans, as well as the Small Business Administration, which is a government agency that provides information on relevant lenders. You can also use online resources to begin your search – websites such as NerdWallet, for example, can prove helpful in this process.
Choose a Loan Type
Finally, you’ll want to decide on a loan and apply! There are countless types depending on your needs – you can apply for anything from start-up loans to equipment loans to disaster loans. No matter your type of business, there’s funding support out there for you.
A small business loan can be beneficial for your company in numerous ways, from supporting your current expenses to helping you grow, but the process of acquiring one can seem complex at first. Thankfully, knowing where to start can make all the difference. With these tips under your belt, you can feel confident you’ll secure the right loan for your company.
