Whether you are starting a new company, buying more real estate for your established business, or acquiring new equipment, you will most likely need to apply for a small business loan to secure financing.
The process of acquiring capital can be a lengthy one. Read on for a list of steps in the loan application process and some tips on acing all of them.
1. Loan-Purpose Analysis
During this first phase, the banker wants to know everything about your small business and exactly how the money will be used. It’s important that you are honest with the banker. This will assure you aren’t taking any unnecessary financial risks. The lender will examine the details about how you plan to spend the money, and even your character and personality.
2. Repayment-Source Analysis
During this phase, the banker wants to see your credit history, credit score, and repayment plans. The banker will take a close look at the success and financial trends of any previous business ventures you’ve undertaken. It’s also a good idea to put forward some collateral during this phase because this will strengthen your overall loan application. Having collateral could be the tipping point that determines whether your application results in approval or rejection.
3. Loan Structure and Management
Here, you’ll discuss the repayment schedule, the capital that the loan will be used for, and other technical questions. You and the banker will work together to write up a series of documents that are required for full credit underwriting.
Now, you wait. Keep in mind that the whole application can take around three months for an SBA loan. Other types of funding may be approved sooner. Check in every once in a while to see how the process is coming along. Biz2Credit offers the help of loan specialists who can help you complete the application and guide you through the entire process.
To speak with a Biz2Credit loan specialist, visit www.biz2credit.com or call (877) 861-2210 for guidance.