The small business loan application process is notoriously tricky. But there probably aren’t as many twists and turns as you might think. There are definitely easy things you can do to increase your chances of getting your loan application approved. Read on for some ideas:
1. Revolutionary Idea
No doubt about it—if you’ve got a great idea, it’ll be easier to get lenders to jump on board. Beyond lenders, it’ll also be easier to draw customers and investors. So really think hard about what kind of business you want to start — and make sure it’s something that will really make a positive change!
2. Good Credit
Your credit score is the number-one determining factor of your creditworthiness. So make sure it’s stellar! If your credit history is less than ideal at the moment, there are simple measures you can take to start working on that now. Refrain from taking out other loans, avoid opening credit cards, and always pay your bills on time (and in full, if possible). Having good credit will make you a much more reliable candidate in the eyes of lenders.
3. Forward Thinking
Show that you are a goal-oriented person who thinks and plans ahead. Display this in your business plan by having clear goals for the future of your small business — including some clear ideas about how you are going to use the money you obtain from your loan.
4. Apply Early
Applying at the start of the month can often make you increase your chances of being accepted. That’s because many lending institutions have an allotted number of loans they can give away, and this number usually resets at the beginning of the month.
The loan application process doesn’t have to be difficult. Visit www.biz2credit.com for more helpful advice.