1. How do I get the best deal for my business loan?
2. How do I qualify for a business loan?
Lenders have varying eligibility standards for their business loan products. Generally, they would weigh the number of years your business has been operating. They would also review your business’s monthly revenues to ensure you generate income to make loan payments. They would also look into your credit and payment history, whether you’ve been timely in paying vendors, filed for bankruptcy and such.
Notably, your personal credit score would be evaluated if your business has a limited operating history. Lower scores may not necessarily disqualify you but they could mean higher interest rates. Start-up companies can still qualify for business loans. Find out how from our lenders.
SBA loans are made by lenders using guidelines set by the SBA in order to meet its guarantee requirement.
3. What are the requirements for a business loan?
The SBA requires various personal and business information to include in your small business loan application. These are your personal background and credit report, resumes; as well as your business credit report, business plan, financial statements, bank statements, income tax returns, collateral, and other legal documents.
Lenders also require all financial details of your company, from its background to future growth plans, in addition to personal information.
4.What questions do lenders ask when you apply for a business loan?
Notwithstanding each lender’s own set of parameters and questions, the SBA has identified some questions normally asked in any business loan application. It’s important to prepare yourself and the necessary documents so you can properly respond to: