Easy ways to get a business loan
Regardless whether your business loan request is ultimately declined, there are several easy ways to help get a business loan and dramatically increase your chances of being approved. These include an asset based loan and a concurrent loan.
Review business records before applying
Review personal credit reports
Some of the options above include same day business loans. Review a current copy of your personal credit report. Look to see if there is any derogatory information, such as delinquencies and collections. If there are and they are in error, contact the credit agencies and dispute the information. Also look to see if there is any other information that could be considered negative which make your file weaker. This can be credit cards that are very close to the limit or over the limit. If there are credit cards that are at the limit, pay them down to below 80% of the limit the month before you begin applying for credit. If the first address listed on your credit bureau is outdated, contact the credit bureau to update it.
Review business credit reports
If your business has a business credit file with Dun & Bradstreet or Experian Business credit report, review the file. Identify inaccuracies or omissions and contact these credit agencies to have the file updated or corrected.
Check Secretary of State records
Check the Secretary of State listing for your business. Look at the addresses and any owner information. If there are Corporate document updates, such as amendments to the Articles of Incorporation, look at them to see if the most current updates are included. If any of this information is incorrect, send the Secretary of State the updated articles.
Check online Business listings
Review the most popular online business information listings such as Yellow Pages online, Manta, Yelp and others to make sure your company’s information is listed correctly.
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Apply for the right loans
Try to determine which loans would best match your company’s needs and profile. This will depend on your company’s credit, assets and cash flow. If your company is strong asset wise, look first at loans that are asset based. If your company has strong cash flow with little in assets, look at loans that are based on the cash flow of the business.
Apply with the right lenders
Now you have determined which loans would be the best fit for your company. Another one of the easy ways to help get a business loan is to look for lenders that specialize in these types of loans. Some companies advertise that they do all types of loans. Those companies may not be the best match because they are probably not specialists in any one type of loan. Companies that advertise one type of loan tend to have the best expertise in those types of loans.
Apply for the right amount
Don’t “shoot for the moon”, believing if you ask for a very high amount and get less, it will still be more than what you need. Lenders will only approve the amount your business qualifies for. Requesting more will not get you more. Apply for the amount you really need, not more.
Discuss the request with a knowledgeable representative before applying
Once you have identified the lender you want to apply with, call them before applying. Speak with someone who is more than just a representative reading off a script. Talk with someone who knows the products and will give you an objective opinion about your chances of being approved and any tips on applying with their company specifically.
Review business revenue
Prior to applying, look at your company’s financial statements and bank statements. Look at how much money the company has been making in Gross Sales and Net Income. Take a look at the Bank Statements. Look at the amount being deposited each month and the average daily balance. This will be a major factor in how much your new loan payment can be.
Review monthly payment on loan
Once you have decided how much you need, decide on how long you need to pay it back. Calculate about how much the monthly payment will be. Then look back at what your financial statements show for monthly Net Income. Your company’s Net Income per month needs to be comfortably more than the new monthly loan payment on any future loan.
Callers call in with similar requests. Aside from calling to asking for “easy ways to help get a business loan”, they also ask for “easy ways to get a business loan”. Sometimes callers do not ask for multiple ways to get assistance.
For tips and help on Financial Statements and business plans, visit the SBA , Small Business Administration. They are an excellent source of business information.
With correct implementation, you will find these tips to in fact be easy ways to help get a business loan.