Small Business Loans Fresno
One of the first things that any providers of small business loans in Fresno, CA will do is obtain copies of your personal and business credit reports. Before reading any of the details, they will look at the credit score. A higher score means a better chance of being approved and receiving an offer with better terms and conditions.
Lenders offering small business loans in Fresno, CA will want to review a number of documents related to your personal and/or company finances. While the range of documents may vary slightly from one lender to the next, there’s a good chance that you will need the following: (1) Income tax returns, personal and company; (2) your company’s income statement and the current balance sheet; (3) company Articles of Incorporation along with all current business licenses; (4) bank statements, personal and company; (5) proof of identification, like a driver’s license or state-issued picture ID; and (6) your resume and a reasonable projection of the company’s finances over the life of the Fresno small business loan you are seeking.
Some lenders only work with business owners who have strong histories in the same or a related industry. They may also require that your business meet certain standards for monthly revenue generation or collection. While some are open to providing financing to a start-up business, others may require that the company be in operation for at least three to five years.
You can bet that all reputable small business loans in Fresno, CA will want to review your business plan. While that plan should present your company in the best possible light, it must also be realistic.
Establish realistic expectations in terms of the product or service delivery process, sales and marketing goals and strategies, and what is known as a SWOT analysis. The latter is simply an honest look at the company’s strengths, weaknesses, opportunities, and threats as you recognize them today.
While there is such a thing as an unsecured Fresno small business loan, the more likely scenario is that you will need to pledge some sort of collateral. What do you have that would serve as an acceptable asset? Many lenders will readily accept real estate, production equipment, or even a finished goods inventory as security for the loan. The collateral minimizes risk to the lender, since it can be seized and sold to settle all or part of the Fresno small business loan if you should default for any reason.