Getting a business loan isn’t easy for many small businesses. Traditional banks want to deal with larger organizations, so it can be daunting to approach lenders in your area. The Small Business Administration backs small business loans to give you more lending power. If you’re considering an SBA loan, you’ll want to be prepared for the process.
Here are five tips that can help you.
- Know what you plan to use the money for.
When you’re asking for a loan, the lender will want to know what you plan to do with the loan.
- What type of loan do you need?
There are several types of SBA loans. Knowing which one fits your needs will help you be more prepared to ask for it.
- What type of lender do you want?
For an SBA loan, the lender has to be approved by the SBA.
- Do you qualify?
SBA loans are highly competitive, but they do offer good rates and terms. You will need to be prepared to show longevity (two years or more) in business. Your personal credit should be in order. You can talk to the lender about qualifications to be sure you can get approved.
- Are your documents ready?
To apply for an SBA loan, you’ll need to have your paperwork in order. There’s a lot of it, but the SBA offers a checklist to help you out. Be prepared to show your business documents, like corporation papers and state registration. You’ll need your business financials, such as the P&L, balance sheet, assets and bank statement from the past few months. You’ll also want to have tax statements for the past couple of years.
Getting an SBA loan is a good thing. Monstera Lending Group offers financing options to fit into your business goals. Contact us to discuss SBA loans and other types of funding to grow your business.