Business loans are an important part of expansion plans for any firm out there. These loans provide the capital business owners need to invest in their business to get more clients, more locations, and more revenue. However, not all business owners find it easy to find the funding they need to grow their business.
When you work with Delancey Street, you’ll notice that your business goals come first. While credit is an important aspect of any lender’s requirements, it shouldn’t be the only one. Every business has its own unique needs and finding the loan amount and repayment plan that meets those needs is part of the Delancey Street process. Here are some of the benefits you’ll get from working with us:
- Quick Approval Process (Typically within two business days)
- Very Flexible Repayment Programs
- No Restriction On How You Spend Your Loan Money
- Accepts Bad Credit Borrowers
Understanding The Pre-Application Process
Before you decide to submit an application for business funding, there are some necessary factors you need to consider. These will ensure that you not only apply for the right type of funding that you need but also that you have a feasible idea of where your business stands financially. The three key areas you want to evaluate before filling out an application are your company goals for the money, your credit report, and your financial statements. Let’s take a closer look at each one of these areas below.
Goals For The Money
It may seem the obvious answer of any business owner to acknowledge that having more capital allows them to create more revenue. However, you need to be specific about how you’re going to do so. Why do you need the loan amount that you’re going to be requesting? What are you planning on doing with the money? You should have these written down in exact detail so that there are no questions later down the road. This will ensure that you stay on track and spend the loan proceeds on the correct solutions to help grow your business’s revenue.
As a business owner, it’s likely you’ll be applying for a business loan with a personal guarantee. This means that both your personal credit history and that of your business are evaluated in the loan process. The better the credit history, the better the loan terms. Those with higher credit scores will receive lower interest rates and more flexible term options than those with low credit scores. Over the life of a large business loan, this could mean the difference between paying thousands of dollars in interest or not. If you notice that your credit situation is not in the best possible place you can get it, you may want to work on improving your credit before applying for a small business loan.
If you own a business, you should be quite familiar with income statements, cash flow statements, and balance sheets. These tell you the financial state of your business at one broad look. When applying for a small business loan, you’ll need to show all of these documents. It’s a good idea to have them printed off and prepared in a professional looking portfolio to submit with your loan application. Having this ready now will ensure that you’re not rushing around during the loan process trying to gather documents.
Other Things To Consider
When you apply for a small business loan for your firm, you want to be sure you understand the loan. Far too often business owners just look at the money they will receive and not at the actual interest rate and associated borrowing fees. You want to take your time during the loan process and review all the terms. Don’t leave any stone unturned during the process. This will make sure that your business can handle the loan and that you feel good about signing on the dotted line.