There can be several challenges encountered in acquiring commercial loans. Not all of them can be predicted, but many are easy to see coming a mile away if you know what you are looking for. The following steps should help entrepreneurs recognize and prepare for some of the most common challenges before they overwhelm the situation.
Not Knowing What Type of Financing is Needed
Entrepreneurs just starting a business obviously need business loans for early stage business, or start up loans. If credit is an issue, it may be necessary to find business loans for bad credit. An established business may need equipment financing and leasing association, or it may be best to see a merchant cash advance depending on the situation. Not knowing what kind of financing is needed may not seem like a big deal, but it can be a definite challenge when trying to get a small business loan.
Type of Lender
A great lender can help small business borrowers determine what kind of financing is needed if it is not known, but another challenge is knowing what kind of lender will work best for the situation. Banks are great, but they are not always the way to go. Credit unions, cash advance lenders, and other non-bank lenders may offer products better suited to the needs of the specific entrepreneur. It all depends on a number of factors, and the only way to find out is to do the necessary research.
Often it can be overwhelming trying to pull together all of the information needed by a potential lender. While being organized beforehand will help with this, sometimes the hardest part is actually putting it all together in the professional format required. This format is called a business plan, and if you are not a great writer, it is wise to get the information together and hire a writer to help you.
Sites such as Biz2Credit.com can help borrowers overcome each of these challenges because they automate the loan application process. They can help borrowers apply for SBA 7(a) loans and other small business loans, including cash advance, accounts receivable financing, and small business lines of credit. Their network of 1,100 banks and non-bank lenders all specialize in small business lending, and they can even help with writing the business plan.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.