1. History Matters
If you have an existing business that needs an influx of money, loan officers will likely review historic earnings and other financial statements when considering your loan request. If your business is a start-up and currently has no data, lenders will review your past entrepreneurial endeavors and your personal financial history to get a sense of your creditworthiness and reliability.
2. Resolve Credit Issues
If you have outstanding issues in your credit history, resolve them before applying for a business loan. You might be surprised to learn how many factors affect your credit score. For example, having a credit card balance that is over 30% of the total limit can lower your score. Your credit history is the single greatest indicator of your creditworthiness, so make sure everything looks stellar.
3. Have Collateral
If you have dependable collateral to back up your loan, your appeal as a loan candidate becomes greater. People are using all kinds of things as collateral nowadays, including expensive jewelry, rare artwork, luxury cars, and even antique furniture.
4. Take Your Time
Don’t turn in that loan application until you’re fully ready. That means having a business plan, 30-second pitch, collateral, financial statements all prepared and ready to go. What’s especially important— have your financial documents ready if you intend on applying for a small business loan.
Biz2Credit can help you navigate through the array of loan options to pick the one most fitting for your business. Visit the website or call (877) 861-2210 for help.