Managing My Business, Growing My Business
Preparing to Take on a Loan for Your Business
Date:17 August, 2021
Whether it is to get your business up and running or fund expansion plans, at some point, most companies need to borrow money. Understanding how to navigate the borrowing process right from the start can increase your chances of securing the loan terms you need in a smooth and easy process. Here are some things to consider when preparing:
What Are Your Reasons For Borrowing?
Potential lenders will want to know how you intend to use the loan. They will look more favorably if the funds go towards producing lasting value for the business. A loan to expand operations to meet the needs of a signed contract with a major customer will be more attractive to a lender than one where the proceeds simply meet the needs of your ongoing operating costs.
Are You Borrowing From The Right Source?
Consider all of your options for capital before choosing a financial institution. While running up your credit card can be expensive (and asking relatives for funds can be difficult) those alternatives may be better for obtaining small amounts over a short period of time.
Are You Approaching Lenders That Work With Your Type Of Business?
Suppose the institution already knows you, your business, your industry, and potentially your customers. In that case, they may already have a great deal of the information they need to make a lending decision. Look for lending partners that work with businesses of your size, in your industry, or specific geographic area.
SBA Loans Help Small Businesses Grow
Obtaining funds to help your company grow is not always an easy task. Small Business Administration loans, or SBA loans, can help. For eligible businesses, the SBA offers loans on terms not available through conventional loans. These loans are guaranteed by the U.S. Small Business Administration and serve to help small businesses grow. To learn more about how an SBA loan works, CLICK HERE.
Examples of typical SBA Loan Uses:
- Business Start-Up Costs
- Renovation / Expansion of Commercial Real Estate
- Large Operating Purchases
- Equipment Purchases
- Co-Owner Buy-out
View the SBA’s loan application checklist HERE.
All loans are subject to credit approval