The loan application process can be tricky to navigate, with many factors affecting the likelihood of approval and many steps involved in the lengthy ordeal. But one factor that people often overlook is timing. Could timing play a role in small business loan application? It most certainly can—read on to find out to time things to your advantage.
1. Apply at the Beginning of the Month
After last month’s round of loan applications have come and gone, lenders are ready to take on a whole new pile. If you apply at the beginning of the month, you’ll probably be dealt with in a more patient manner. Something to keep in mind when applying for loans.
2. Anticipate Delays
Don’t apply right before you need the money; instead, give yourself a buffer zone. Apply several weeks in advance of when you actually need the money by, to allow room for delays, postponements, and other inevitable issues that may arise.
3. Provide Explanations and Details
The more questionable your financial history looks, the less likely lenders will be to approve your application quickly. So if your past financial statements really do seem too quirky, offer detailed explanations upfront. By putting all your information on the table, you can minimize the amount of time lenders will spend questioning your application. Remember that lenders are risk-averse—they don’t like lending to people who seem risky, untrustworthy, or questionable.
4. Apply When Your Business is Doing Well
If you already own an existing business and are looking to expand, apply during a time when your cash flow and finance-related numbers are doing well. Once again, lenders want to lend to businesses that are financially stable, not businesses that seem rocky.
Biz2Credit can help you navigate the small business lending world. Visit the website or call (877) 861-2210 for help.