Did you know that the U.S. has a whopping 28 million small businesses (companies that employ fewer than 500 people)? Despite the extensive array of small businesses in the country, all of them have one thing in common: the need for money.
You need money in order to make money to maintain inventory, to aid with cash flow, or even just to get your business started and running. Having capital is necessary for every single entrepreneur. The biggest obstacle for these entrepreneurs trying to secure financing is getting their loans approved. Read on for a list of tips for getting your first small business loan approved as efficiently as possible!
1. Project for Success
Create realistic financial projections for the short-term, medium-term, and long-term future of your company. Demonstrate to loan officers that your business is headed for success, and prove that it will be a competitive one.
2. Show Your Professionalism
Nobody will lend money to someone who seems sloppy, rude, and unreliable. Be polite, dress professionally, and be courteous. Have a positive attitude, and be prepared to show that you are confident in your plan and your creditworthiness. Basic manners can make a world of difference when it comes to making a first impression on the loan officer handling your loan.
3. Prepare Collateral
Most loan applicants are required to provide some kind of collateral before being approved for a loan. Those who need the financing in order to pay for equipment or inventory are especially in need of collateral. If you have no property or assets against which to secure your loan, it is less likely that your loan will be approved.
4. Check Your Credit
Before turning in your final loan application, take one more minute to scrutinize your credit history to ensure that there will be no surprises during your meeting with the loan officer. It is not too late to point out errors or miscalculations—better safe than sorry! Biz2Credit has a free BizAnalyzer tool that enables you to take a snapshot of your company’s financial situation.
If you have any questions about the loan application process, Biz2Credit is here to help! Visit Biz2credit or call 877-861-2210 for assistance.