Pizzeria Small Business Loans + Free Evaluation + Bad Credit is ok
Obtaining a small business loan for your pizzeria is indeed a challenge, but it shouldn’t be a nightmare, especially when you know about the required documents. This type of loan is not the same as your typical personal loan simply because it involves a lot of risk for the lender. Therefore, these lending institutions have much stricter eligibility criteria with more extended applications than most other loans.
You can increase your chances of getting approved when you gather all the essential documents required, along with your financial details, which will complete the application for the small business loan.
What Information Do You Need to Provide for the Application?
Several financial institutions, such as banks, will often require the applicant to make an appointment so that the process is completed in person. On the other hand, newer lenders can automate the application and can conveniently fulfill the request.
Initially, you will need to submit the following pieces of information:
- Personal details, including your full name and contact information
- Marital status
- Business name
- Business information, such as phone number, email address, and location
- Annual revenue of the company
- Personal financial information, including income and bank account details
- The amount you need for your company
- Your intention as to how you will use the loan
The details mentioned above are just some of the basics that most banks and lending institutions will ask from you. Be always ready to provide more information in case they request for additional items, especially in their application forms.
What Documents Should You Provide During and After the Application Process?
Most organizations already have a list of the requirements on their website. You can provide them when you apply. Meanwhile, some will ask for additional documents after the application, which is usually the case if you’re seeking for a considerable amount of financial assistance.
After you apply, you can talk to the representative of the lending institution to check your application. You may be asked to confirm the information by means of uploading or sending further documentation. These files will typically have the financial details of your business, such as:
Bank statements: Most lenders require that the bank account is at least two years old so that you can provide enough copies of the transactions made in that account. The information here can be used to validate your financial status.
Balance sheet: Lenders ask for this statement because it has the list of your liabilities, capital, and assets. It is, therefore, a good indication of your company’s financial standing.
Revenue statements: You may also know this document as your profit and loss statement. Lenders require this file from the borrowers, and most are strict with it that they need the most recent revenue statement. Also, they want you to provide your company’s reports from the past two years.
Tax returns: Be ready to give both your personal and business tax returns. Most of the time, the lenders require these two statements when the company is still young or those that are less than two years old.
Personal credit score: Submit a copy of your credit report. Note that there are three main reporting bureaus and it will genuinely help your application if you give a copy of all three reports. If your personal score is 600 or lower, it will jeopardize your Pizzeria small business loan application.
Business plan: While not all lenders may require this document, a solid business plan can showcase the credibility and professionalism of your company and team.
Collateral or insurance: You can lower the risk of the lender and increase your chances of getting approved for the loan if you can provide collateral.
Most banks require that you can give a tangible asset to secure the loan if by chance you default the loan payments. In some situations, the bank may also opt to take out insurance against you or a business partner for certain circumstances, such as deaths in which case you can no longer pay for the loan.
Financial details of the business owner: Aside from your bank account details, you should be ready to provide documents that show your personal liabilities and assets, which would include investments, such as cars, house, credit cards, and other loans.
Some lenders include the option for consumers to upload these documents online. We recommend that you protect the integrity of the materials you upload, which you can achieve when you submit them as PDF files. You will also find some lenders that require fax copies of certain documents, which may also help your application and its approval.
How Can You Improve Your Chance of Getting Approved for the Loan?
Specific methods can increase the possibility of the bank approving your loan. Some aspects though may be out of your control, but they can still help if you meet those requirements.
A high credit score: As much as possible, you should have a credit score of at least 680. Most banks will approve your application when they see that you have an excellent personal credit score. If you have 600 or lower, it doesn’t mean you shouldn’t apply.
You can improve your score within a few months by making sure you pay your debts on time. Request a free copy from TransUnion, Equifax, and Experian, so you know in advance if you need to improve your score.
Business age: While you cannot do something if your business is just new, you have a higher chance of getting approved if your company has been around for at least a year or two.
Type of industry: Many lenders impose some restrictions because a business is in a particular sector, such as firearms and gambling.
Amount: The higher the amount you need, the longer the application will take. You may also be asked to provide more documentation than those that only need lower amounts.
Purpose of the loan: You will need to convince the lender about your reasons why you will need the funding for your business.
Many lenders also have minimum annual revenue so you can get approved. Typically, they require that you have at least $50,000 to $150,000 depending on the bank.
Starting a business is an exciting step and can lead to financial freedom. While there can be tremendous upsides to owning a business, becoming an entrepreneur often involves struggle and financial risk. The overwhelming majority of businesses require capital. When the need to buy equipment, rent or purchase a physical location, or invest in advertising arises, business owners must come up with a way to afford these business needs. People who have savings when the start a business may opt to use the money saved to cover business costs. Others are able to borrow money from a family member. Still, many small business owners secure a loan to help them afford what they need to grow and expand. When looking for a small business loan, there are several factors entrepreneurs should consider.
Having a Clear Purpose for the Loan
Loans must be repaid. Having a clear plan for how the money will be used can help the business make the most of the financial help while allowing the lender to feel more confident in approving the loan. Receiving a large sum of money without a plan for how the money will be applied to the business can be a recipe for disaster when it comes to borrowing money that must be repaid. Lenders are much more likely to extend a loan to a business owner that has a clear, actionable plan in place and a proven track record of timely repayment.
The Importance of a Satisfactory Credit Profile
For businesses that are just starting out, lenders will usually look at the business’ credit profile as well as the business owner’s personal credit. Many small business owners are completely unaware of their business credit profile. Avoiding this pitfall from the beginning by concentrating on building a positive business and personal credit history will only help the business later on should the need to borrow money arise.
Finding a Loan that Fits the Business’ Needs
All business lenders are not necessarily created equally. Determining the size, purpose of the loan, and the time frame within which the business would like to receive and repay it can help businesses determine whether a lender or individual loan product is a good fit. Business loans can either be short-term or long-term. Therefore, business owners should keep these options in mind when searching for a lender who offers the most appropriate loan and a payment schedule that is most feasible.
Length of the Application Process
It is always best to plan ahead when considering taking out a business loan. Some lenders have an extensive process that can take a couple days, several weeks, or even months, depending on how much capital the customer would like to borrow and the purpose for which borrower would like to use the financing. Delancey Street offers businesses a fast approval process through which the business may receive funding in as few as two days. With all lenders, the timing of the process largely depends on the applicant’s ability to quickly assemble the required information and documents and to present the lender with a professional application packet.
Efficient, Flexible Lending Solution for Businesses
Delancey Street offers fast, flexible loans to cover virtually any business expense that may arise. We understand that every business owner has a past, and we are able to work with credit histories that are imperfect. Our aim is to help businesses achieve their goals and rise to the next level; therefore, we accept businesses with a variety of cash flow structures and lending needs. With proper planning and forethought, the loan process can be seamless, and business owners can have the funding they need to grow and expand in a matter of days.