If you're reading this, I'm earning money in some way. I was compensated with money and/or product. Thanks for helping to feed my family. I also may have a financial interest in companies named. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not an accountant, lawyer, doctor, fitness expert, or nutrition specialist. So, talk to a professional before acting on anything you read, watch, or listen to below. Get your own advice and do your own research. Email me at [email protected] with questions.
Small business loans are a popular and reliable source of funding for startup companies and mom-and-pop shops. The SBA (Small Business Administration) is an institution that helps business owners connect with lenders who can offer helpful and manageable loans. There is also a wide variety of alternative lending options, each with its own benefits.
If this is your first time applying for a business loan, read up on how to prepare for the application process. Make sure you can check these boxes before you submit that application!
Lenders like to loan money to trustworthy people with a record of repaying their debts on time. Your credit score is a significant factor in this decision, so make sure you’re paying your existing bills and debts in a timely manner. If anything on your credit report looks suspicious or fraudulent, remediate the problem before applying for a loan.
Create a detailed five-year business plan that explains in detail how you’ll be using the loan to grow your business and maintain a profitable model. In your business plan, include:
Think of your business plan like a pitch. Include plenty of documentation and market research to support your plan and convince lenders that your business is a worthwhile investment.
While SBA loans and traditional bank loans are popular options, they’re not the only options. Consider these alternative lending methods as well.
No matter which lending method you ultimately choose, you’ll need to read every word of that loan application. Get out your magnifying glass if necessary—you don’t want any hidden loan fees lurking in the fine print to take you by surprise.
Remember: don’t sign your name to anything you don’t understand. Read your loan paperwork in full and ask your lender plenty of clarifying questions.
Starting a new business is an exciting step in life. Reap the rewards of business ownership for years into the future by preparing for the business loan application process and all subsequent steps.
Essential Tools for Your Home Bakery Business
How To Keep Your Business Compliant and Out of Trouble
9 Investment Ideas For Financial Growth
Understanding How to Leverage Your Value in Influencer Marketing
6 Finance and Accounting Tools To Improve Capital Budgeting Decisions
5 Things You Need to Know Before Starting Your e-Commerce Business
Get Your Content Seen By Google With These Tips
How To Turn Your Love of Cooking Into a Food Truck Business