In March news broke that small business lending was up, and then in May news came that it was down again. What is up with that? What are entrepreneurs to do? How do lenders determine who to lend to, and why does anything matter other than the individual borrower at the specific date and time? Many factors affect what the small business lending market it doing, but there is never a complete halt, nor is there ever a time when everyone is guaranteed a loan. Following are some tips to help you land a loan, and to know when the best time to ask for a loan may be.
Consider the Type of Business
There are times when certain businesses are more likely to get a loan than other types simply due to the economy. For example, with the most recent decrease in small business loans, small manufacturers were actually still doing ok when it came to getting small business financing, but small retailers and transportation companies were considered more high risk and economically sensitive, making it harder for these small business owners to get financing.
Give it a Shot Anyway
Regardless of the market, there is no reason to not try for a loan if you need one. The key is to be prepared. Make sure your credit is as much in order as possible, write a professional business plan or proposal, or have one written, and present yourself and the plan professionally. Do your research, know the answers to the questions the lender is likely to ask, and hope for the best.
Do Not be Afraid to Ask for Help
There are companies out there, such as Biz2Credit.com, that offer help finding the perfect financing products for borrowers. In fact, Biz2credit has a network of 1,100 lenders that take names of prescreened borrowers from them on a daily basis. The borrowers benefit because they are able to narrow their search to only those lenders that have something that fits them just right. Whether it is a startup loan or a small business line of credit, the time and money saved on the borrower’s part is a major benefit.
The market does fluctuate in relation to how easily loans are given, but even in the down times there is still hope if you prepare correctly and have your information in order.
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.