Albuquerque Small Business Loans
Running a small business is not a walk in the park. Business owners have to go through numerous challenges to achieve their goals. One of the major issues that small businesses face is lack of enough cash. However, small business owners don’t have to worry about where they will get funds to grow their businesses because there exist financing options such as Delancey Street. Delancey Street offers Albuquerque small business loans to any kind of business. In fact, the firm offers up to $2 million to small businesses that qualify for its business loans. What’s more, the company has friendly terms that could see your business grow.
Some of its terms are:
- A quick approval for the loans
- We credit your account with the loan amount in as fast as two business days
- Bad credit is acceptable
- We offer flexible repayment plans based on the financial position of your business
- You can use the loan amount to do whatever you want
Fast Albuquerque Small Business Loans
Do you own a small business in Albuquerque? Do you also want a loan to help your business grow? If you do, you have to consider a couple of things. To begin with, you must know that obtaining the loan amount you want is not easy. You have to follow some steps. As a result, you need to prepare yourself if you want the loan application process to go seamlessly.
Here are the steps that you must follow.
1. Pre-Application Process
When looking for Albuquerque small business loan, you need to establish your business needs. You have to assess the current situation of your business to determine if getting a loan is the best thing.
In this initial step, you must assess your business goals to determine how the loan amount will help you achieve them. It’s also imperative to establish the motive behind you getting the loan. Moreover, you have to establish your firm’s creditworthiness.
2. Your Credit
Your credit score is crucial when it comes to applying for Albuquerque small business loans. Traditional lending institutions issue loans based on your credit. If you have a higher credit score, then you will get a higher loan amount with better terms. Although our institution doesn’t consider your credit, it is imperative that you have a clear grasp of your credit history. As such, you need to check your credit report and analyze it carefully to know your credit history.
3. Improving your credit
Bad credit is not good for small business owners looking for a loan from banks. Therefore, you MUST review your credit report to check for errors. If there are any, ensure to have them rectified. A viable way to improve both personal and business credit scores is clearing overdue debts. Moreover, you need to have a low utilization rate.
4. Get specific
Your business cannot get a loan from a bank by just saying that you want a loan. You have to make your loan request specific. As a result, you should show the bank a proposition that outlines your budget limits as well as the revenue projections of your Albuquerque small business. This ways, you will stand a better chance of convincing a lending institution to issue you with the loan amount you want.
5. Have the financial statements ready plus assemble your documents
A lending institution has to check your financial statements before giving you a small business loan. The financial statements include a balance sheet, a cash flow statement, and an income statement. Present the statements to your lender since they display your firm’s creditworthiness and financial position. Ensure to present them in a professional manner.
6. Understand the cost of your loan
Before you sign your Albuquerque small business loan documents, it is imperative to understand what your loan contract stipulates. You must know the cost of the loan by reviewing the loan interest rate and APR in a sober manner.
Most people only have a vague understanding of credit scores. When you’re in the market for small business loans in IA, you should be familiar with both your personal and business credit scores, especially if you have been in business for a decent amount of time. Your personal credit score can range from 300 to 850 – you want it to be as high as possible. Also called a FICO score, your personal credit score is a product of these five factors: your payment history, how much debt you have, the types of credit you have, the amount of time you have had credit and recent credit inquiries. Of these factors, your payment history is the most important.
Even if you always pay your bills on time, there’s a possibility that there are problems with your credit report. The Federal Trade Commission reported that a significant number of consumers found detrimental errors on their credit report. The good news is that they were able to eliminate the errors, which often increased their credit score. To get a free copy of your credit report every year, you can visit AnnualCreditReport.com. If you find inaccuracies, you can work with three credit bureaus (Experian, TransUnion and Equifax) to ensure the corrections are made. If there are issues with your business credit report, you’ll work with Dun & Bradstreet, Experian and Equifax. This can be important, especially if you’re interested in SBA loans – they require strong personal and business credit.
When seeking small business loans in IA, in order to maximize your chances of loan approval, you should try to meet all of the minimum qualifications. As a matter of fact, it wouldn’t hurt to exceed their criteria if possible. While most lenders consider the strength of your application in totality and offer flexibility, that’s not always the case. SBA has additional requirements and tend to be more rigid. On the other hand, online small business lenders are often more lenient. Generally speaking, minimum qualifications involve your annual revenue, credit scores and years in business. Lenders will also look for bankruptcies and delinquencies, which can pose a problem.
If you don’t already have a business plan, you’ll need to develop one that includes the purpose of the loan, financial projections and how you plan to increase profits. Here are some of the common elements that you should include: Company overview, industry analysis, management team, products and services, sales and marketing strategy, operations plan, and SWOT analysis (strengths, weaknesses, opportunities and threats).
There’s a chance that you may be required to provide collateral in order to qualify for a small business loan. Collateral might include real estate, equipment or inventory. Lenders want to make sure they have a recourse in the event that you go out of business. If you don’t quite like the idea of providing collateral, you might want to consider an unsecured business loan.