Having a great business plan is the first step in the entrepreneurial journey. Although you might feel ready to go the extra mile, it can be quite hard without the capital to support your dreams. To kickstart your project, here are five tips for securing a small business loan.
The right lender
There are several options for lenders, but here are the three most common. Firstly, The large national financial institutions are where you can approach your current bank for the typical bank loan. Second, the alternative lenders which bridge the gap between giant banks and community lenders with minimal requirements. Lastly, community lenders and credit unions are locally-owned banks interested in the economic growth of your area.
Prepare intensely
To speed up the lengthy approval process, you must start with having a solid business plan that covers everything you want with your business. Having an exceptional credit history also helps, but major credit bureaus must verify it. Ensure you have personal and business assets to present so that your lender knows they’ll get paid back.
Drop the details
The clearer the business plan is, the higher chance of approval. During the entire application process, be sure to communicate. Include the reasons why you need the money and for which specific purpose it will be used. Make sure you are credible and easy to reach whenever the lender is asking for your time.
A team
Lenders are curious to know about your leadership skills, your other investors, and your company’s equity. Be sure to have a reliable team of people that have the same goals as you do. Don’t forget to mention your lender about the other people interested in your work and the different partnerships you have.
Seek help
A small business loan is still quite the process, especially for new entrepreneurs. Thankfully, a wide variety of free resources are readily available as small business development centers. More than nine hundred centers across the country opened their doors to those who need them.
