Securing the right loan at the right time can transform your business for the better. Unfortunately, too many companies that could benefit from a loan don’t apply.
Or, if they do apply, they don’t put their best foot forward because they don’t understand how to create a loan package.
The good news is, we’re here to help. Here are a few major areas you need to focus on before you speak to a lender:
In addition to your business’s credit score, many lenders will require you to produce personal financial information as well. This can include, but is not limited to: financial statements, tax returns, proof of ownership, proof of lease, and any licenses you may require to operate your business.
So take some time to put your personal and professional finances in order before you approach a lender. Plus, dedicating time to studying your own books will give you a better idea of what to expect heading into a meeting.
Even if your credit isn’t ideal, you can still land a business loan if you present a comprehensive business model to your lender. The more detailed your plans to use borrowed capital are, the more likely you’ll get the loan you want.
In addition, provide essential metrics and projections to help you work out a payment plan with your lender.
But above all, resist the temptation to exaggerate any numbers you present to a lender –– it could land you in hot water down the line. And that goes double if you end up with the wrong type of business lender.
Just because intel doesn’t relate to your business itself, doesn’t mean it’s not worth sharing in your loan package.
Crafting a quick guide to how your industry functions and how your company fits into your market can be a great way to express your business’s potential. Don’t be afraid to be frank in assessing your market.
This is especially true if you work in a niche market, or if the competitive landscape has changed greatly in a short period of time. Lastly, don’t forget to include any other business affiliations you might have in your report.
If all of this sounds overwhelming to you, don’t worry. Our team of expert Business Financing Advisors understand that your time is valuable, and will never leave a small business owner in the dark. Utilize our paperwork management services help:
Not only does our team find you the perfect lender for your funding needs–they also perfectly prepare all necessary paperwork you need, and make themselves available 24/7 to guide you through the funding process from start to finish. Contact us today at (877) 482-3008 or apply here to see how we can help.
Simply put, a loan package is everything you need to share with a lender before you apply for a small business loan or business line of credit – and assembling a compelling loan package could make or break your application.
Before you apply for a loan you’ll need to assemble everything relating to your own personal financial stability, and the financial state of your business.
As with anything, it’s better to over-prepare than to arrive short-handed. While it may seem like an undue amount of prep-work, don’t forget about the impact the right business loan can have on your company.
Whether you’re just starting to explore your options, or you’re ready for to pull the trigger, contact us at (877) 482-3008, or fill out our simple 1-minute application here, and a Business Financing Advisor will contact you shortly to see what what we can do for you to take as much.
Check out our free eBook on how to get financing when the banks say no, here:
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.