There are many options to choose from when you apply for small business loan. Make sure to do your research before signing any loan contract and you will want to read the fine print. Many lenders will often put language in their lengthy contracts that they never discussed with you. If you feel like your loan specialist is not being honest or forthright then trust your gut and move on.
There’s nothing worse than getting into a debt situation that is not advantageous for you business. When you fill out the application though make sure you give the lender everything they can possibly use to improve your business profile. If you have a tax return that shows significant profit naturally that will improve your loan approval amount.
Well, that ultimately depends on the lender you are potentially working with and program you are applying for. However, there are some fundamentals that every business loan applicant needs to have. For one, you must have a business. This may sound like commons sense but you’d be surprised how many people try to apply for a business loan without a business.
In addition to having a business, you’ll also need to have a business bank account. Many contractors actually use their personal bank accounts to manage business finances. This is absolutely a mistake, especially if you plan to grow your business and have employees at any point. However, the primary reason you will need a business bank account to apply for small business loan is that lenders will only put money into a business bank account. The reason why is because the loan must be used for business. This is not a personal loan and is not to be used for personal purposes. Lenders will set up Automated Clearing House (ACH) in order to get automatic payments for the loan amount.
Aside from the basics you will need to provide your Social Security Number for a personal guarantee. Since the loan is not secured by any equipment, lenders require that an officer of the business sign for the loan. So, in that regard you’ll want to have at least a decent personal credit profile as well.
Really, the application process only takes about 10 minutes. Most lenders have a one page application and then you also need to provide financials for the company. Once the financial institution has these two pieces of information they will determine your approval within 24-48 hours. However, sometimes it can take longer with some lenders depending on the loan program and your business profile.
Recently, many lenders have created online portals where you can submit your application and follow the progress through the website. With the progression on internet technology it’s become much easier to apply for small business loan. You can take care of it in the comfort of your own home or office on your terms. This really puts the power into the hands of business owners.
Once you are approved the money will be deposited directly into your business bank account within 48 hours. Sometimes the deposit can be instant after completing the final call before initiating the loan. This will depend on your bank’s policies in most cases.
However, the entire process can be completed in a few business days from when you first apply. It’s not a bad idea to submit an application before you need the funds too, that way you already know what you are approved for. Once you are ready to utilize the funds, you can request that to be initiated.
Absolutely! That’s what makes the process is so simple and accessible to business owners. You don’t have to go anywhere to apply for the loan. In fact you can apply right through your smart phone with a number of lenders. Most financial institutions these days offer online options. Gone are the days that you have to go to the bank and wait in a long line just to find out you’re not approved for the loan.
The best lenders are those that offer a client portal where you can login and view your loan information throughout the process. Also, while the loan is in effect you can login to your account and see your balance and payback schedule. This makes the entire processes super straight forward.
Good question but it really depends. If the business just started then the chances of getting approved for a loan are very slim. The minimum requirement for an application is 3 months business bank statements. So that’s probably about the minimum. Furthermore, the business needs to show that revenue is coming in. This is not an investment, it is a loan. Direct lenders are not interested in taking a risk on your new business idea. However, they will provide funding for businesses showing at least some consistency.
If you’re ready to apply for small business loan then click Apply Now in the top menu. You can get through the application in minutes and one of our loan specialists will reach out to you with options. We have a number of programs available and can work with many different business profiles and credit types. Rates can vary across the board for that reason.
If you would like more information do not hesitate to contact us or call 888-583-9497.
