small business loans el paso texas
How to Get Approved for an El Paso Small Business Loan
Small business loans in El Paso, Texas come in all shapes and sizes. No longer are the days where you must apply with your local bank and hope that you’ll be approved. In today’s competitive market, lenders have created new and improved small business loans to help even those with bad credit. Our company works to match you up with the best loan to meet your needs. This article will highlight the process to get approved for your small business loan, quickly.
Gathering your el paso business loan documents prior to applying:
The first step in applying for a small business loan in El Paso, Texas is to determine exactly what purpose the loan would serve and put it into writing. If you don’t have a business plan, you’ll want to create one. For those clients that already have a business plan, you’ll want to update it to reflect the changes you’d like to make. Creating a solid plan takes a little work and should be a priority in the entire process. Business plans are used to illustrate to the lender and anyone else involved in the process exactly how the loan will benefit your company. If you’re unable or unaware of how to create a business plan, hire someone with experience and solid credentials to help.
Reviewing your credit reports:
While you don’t need great credit to get approved for small business loans in El Paso, Texas, knowing where you stand is important. Your credit record is checked with nearly every type of el paso small business loan offered. Some loan programs give more weight to the business plan and revenue, whereas, some place the strongest emphasis on credit. For example, a Small Business Administration backed loan is off limits for those with bad credit and merchant cash advances emphasize the business’s revenue. Business credit is typically reviewed by reviewing a Dun and Bradstreet report. Personal credit is measured by a FICO score, that is provided by Experian, Equifax, and Trans Union. Occasionally, all these credit bureaus are sourced to get a clear and concise understanding of the credit scenario. Paying off any overdue debts or disputing items on the report can significantly raise your score.
Preparing your financial records:
Having your business and personal financial records in order is essential in getting approved for an el paso small business loan. This may include profit and loss statements, revenue statements, tax returns, assets, and more. If there’s any legal issues or documents that will support your loan request, you’ll want to include those items as well. It’s a good idea to have your accountant or attorney review these documents prior to submitting them. If things don’t make sense, it may take a bit longer than expected to get your el paso business loan approved. Having as much information available as possible will make the process much faster and smoother. The lender may request additional documents along the way. It’s essential that you stay in touch and submit the requested items as quickly as possible.
Applying for your el paso small business loan:
When applying for your small business loan, you’ll want to make sure that your application is complete and thorough. Red flags often occur where there’s information that appears to be omitted or exaggerated. We’re often able to issue an approval the same day you apply if everything makes sense and there’s a mutually beneficial partnership. After all the underwriting requirements have been met, you’ll be issued the final approval and will be funded. During the loan settlement, you’ll be given the disclosures that outline the terms of the loan. It’s important that you understand exactly how the loan works and what’s expected of you as the borrower. You’ll have an opportunity to ask questions. During the repayment of the loan, sticking to the terms will significantly benefit your credit. We’ve helped many small business owners in El Paso fulfill their dreams. Get in touch with us online or by telephone to see what we can do to help your small business, today!
Many consumers are unaware that they can receive a free credit report every year from AnnualCreditReport.com. Obtaining your report is a great way to monitor your credit score to make sure it’s has high as possible. Your personal credit score, also known as your FICO score, will range between 300 and 850. Interestingly, the Federal Trade Commission has reported that many consumers find errors on their credit report. The good news is that you can have errors removed. As a matter of fact, 20% of consumers who have corrected their credit report experienced an increase in their credit score.
There’s also your business credit report, which is separate and has a range from 0 to 100. If you need to correct errors on your credit reports before applying for small business loans, you’ll need to work with the respective credit bureaus. Experian, TransUnion and Equifax provide information for personal credit reports. However, Dun & Bradstreet, Experian and Equifax provide information for business credit reports. Incidentally, your payment history is heavily weighted when in the loan approval process, so you’ll definitely want to correct any inaccuracies.
The best way to approach the small business loan application process is with a realization that lending institutions just want to make sure you can repay the loan. Lenders have varying minimum qualifications that must be followed, although online lenders tend to be more lenient and flexible. Once you understand the minimum qualifications, you can boost your chances of loan approval by either meeting or exceeding the minimums detailed by the lender of your choice. Although requirements vary, common requirements involve assessment of your revenue and credit scores. Many lenders also look at how long you’ve been in business, whether you’ve had any delinquencies and if you have ever filed for bankruptcy.
If you’re applying for a loan backed by SBA, then you will need to meet an additional set of requirements beyond what would be customary for other lenders. For example, you’ll probably need to have higher personal and business credit scores.
Due to technological advancements, these days it’s relatively easy to gather legal and financial documents, which is good since you’ll have to provide them during the process of applying for small business loans. The most common documents required include a copy of your driver’s license, Articles of Incorporation, income tax returns, balance sheet, income statement, bank statements, business licenses and commercial leases. You might also be required to provide a copy of your resume in order to demonstrate your business acumen and management experience.
A strong business plan will contain your mission, vision, business practices and much more. Many lenders will request this document in order to assess the strength of your business strategy and whether or not your financial projections demonstrate your ability to increase profits. If you don’t already have a business plan, here are some of the elements that you’ll want to include: Product and/or service description, company overview, management team, sales and marketing strategy, industry analysis and operations plan. You’ll also want to provide a SWOT analysis, which is an acronym for strengths, weaknesses, opportunities and threats.
So what happens if you receive the loan and your business folds down the road? Well, that’s something that the bank consider, which is why they often require collateral. Acceptable collateral may include inventory, real estate or equipment. If you are not interested in providing collateral or simply want another option, you might opt for an unsecured business loan instead.