How To Apply For A Business Loan
Applying for a business loan can sound like a daunting task, but if you know all the steps that need to be taken, the process will go much smoother for you.
A business loan is one that is given to a business owner to use specifically for their business. Like all other loans, it is an accumulation of debt that is to be repaid with interest. It is always in your best interest to repay your loan on time every time.
What are the requirements for approval?
To be considered for a business loan, you will need to start with the basics. They are as follows:
Have your business registered with your secretary of state – Whether your business is an LLC (Limited Liability Corporation), a C Corp (The default standard of a Corporation under the IRS), or an S Corp (Small Business Corporation).
An EIN: This stands for Employer Identification Number. You can get this online at www.irs.gov, and it is free of charge.
A professional phone number/ business phone number
A professional email address/ business email address
A Professional website/ business website
These requirements are not difficult to come by. If you wish to operate as an established business, you would have had to have a majority of these things in place already.
The second phase of the requirements is a little bit more technical, but still attainable. They are as follows:
Establish a business checking account:
Without having a business account, you will not be able to access the funds granted to you should you receive the loan. Sign up for a business account with the bank of your choice.
Build a business credit score/ generate a business credit report:
You can ask your bank to give you access to a line of credit for you to begin using it, or you can get three months of your business’ bank account statements to show as proof.
The Application Process:
We have established all the things that you will need for a business loan. Now that you have been considered, what else will you need to convince the lender that you are right to acquire the loan?
Your business plan:
This detailed document will give the lender a better idea of how you plan to use the funds should you receive them. You will, therefore, need to have cash flow projections within the document
You will be required to make a presentation to the lender alongside your business plan. They will want to know why you need the loan, so prepare to answer that question. The question about the collateral that you have will also come up. Be sure to have your assets in place.
The secret to applying for and getting a business loan is nothing more than proper preparation. If you are a business owner planning on applying for a business loan or taking out a line of credit, contact us. We are ready to help you to get started.
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