Small Business Loans Baltimore
Baltimore Small Business Loan
Your small business strives to meet the customer’s needs each day. For many Baltimore small businesses it is difficult to grow because capital can be hard to come by, even for a successful small business. We specialize in providing loans for Baltimore area small businesses that need capital to expand their scope. We can provide lines of credit, advances, and loans. Unlike many other lenders, we work diligently with small business owners to understand their needs and help them find what they need to grow.
Flexibility is critical for your small business owners and you should seek the same in your lenders. We provide fast approval, convenient repayment plans, and access to the funds in as little as two business days. We know that your time is limited, we believe it can be better spent serving your customers instead of waiting on a lender.
We work with all types of credit, bad credit will not necessarily prevent you from obtaining a loan. Additionally, you can use the funds in any way that will help your business. This includes payroll, expansion, inventory, etc.
Preparation is integral to obtaining a loan for your business. Before you apply you must evaluate your business and its needs. Prioritize those needs and allocate how you will spend the funds if you are granted the loan. Learn about the different borrowing options and choose the one that best fits your needs. Also, evaluate your credit history to see if you are a good candidate before you apply.
Bad credit will not necessarily preclude you from obtaining a loan, but credit will make a big impact on the lender’s decision. Before you apply for a loan get your personal and business credit reports and scrutinize them. Report any erroneous negative marks and make sure it is rectified.
Good credit will also make the loan’s terms better for the borrower. The repayment time and interest rate will be better for borrowers with good credit.
Lenders are more likely to approve you if you have a history of paying your debts. If you can establish a good payment history then your business will be a more attractive option.
Lenders value organization and forethought. Do not approach a lender without a clear plan and specific ways that you will use the funds. You must convince them that your business is worth gambling on. If they have a clear view of where your business is and where you want it to go they will feel safer lending money.
Organize Your Financial Statements
As a borrower, you want approving your loan to be easy for a lender. Collect your financial statements and documents in an easy to read format. Ensure that you provide all the information they will need. You do not want them to have to hunt you down for missing information.
This information provides the lender with a clear picture of your business and your situation. This breeds confidence in the lender for the borrower. The more they know about your business, whether you deem it good or bad, the better it will be for you in the end.
Understand the Terms
Finally, before signing on the dotted line for your Baltimore small business loan, make sure that you understand the terms. A loan is an agreement between a borrower and a lender. They agree to release the funds to you and you agree to repay the loans according to their terms. You must review the agreement and know all of the details. You are responsible for the loan even if you are ignorant of some of the terms.
It is easier for you to qualify for small business loans in Baltimore if you prepare for them. Regardless of whether you apply with a bank or online lender, you will need to familiarize yourself with the lender’s requirements. This will help you save time and frustration.
Build Business and Personal Credit Scores
Your personal credit score is between 300 and 850. The higher your credit score is, the better. Lenders use your credit score to evaluate your ability to pay back the Baltimore business loan. Your payment history, total debt, the type of credit that you have and how long you have had credit will determine your credit score.
One of the most important things that you can do to build your score is to pay your bills on time. However, you may have bad credit due to an error on your credit report. It is estimated that 25 percent of consumers have errors on their credit score. Eighty percent of people do not dispute the errors on their credit report.
You can get a free copy of your credit report by going to annualcreditreport.com. You can get one free credit report per year. If you are an established business owner, then you should check your business credit score. The business score ranges from 0 to 100.
Know the Lender’s Requirements
It is a good idea to familiarize yourself with the lender’s requirements. Some lenders are more flexible than others. You may be able to get a Baltimore small business loan even if you miss one of the criterion. There are typically minimum credit score requirements. Lenders do not want to lend to someone who has had recent delinquencies or bankruptcies.
If you want to get a Baltimore small business loan that is backed by the Small Business Administration, then there are additional requirements that you will need to meet. You will need to meet revenue requirements. You will also need to have a good credit score. There are also businesses that are ineligible for loans that are backed by the Small Business Administration. This includes real estate investing, insurance companies and financial businesses.
It will be easier for you to get one of the small business loans in Baltimore if you apply with an online lender. They typically have less stringent requirements.
Gather Legal and Financial Documents
You will have to provide several financial and legal documents. This includes the following.
- Business and personal tax returns
- Income statements and balance sheets
- A copy of your driver’s license
- A business license
- Commercial licenses
- Financial projections
- Business and personal bank statements
- Articles of incorporation
- A resume that shows that you have business experience
Create a Strong Business Plan
Lenders want to know that you have the ability to pay. That is why you will need to have a strong business plan. Your business plan should have projected and current financials, new loan payments and ongoing expenses. A strong business plan will make your lender feel better about hiring you.
You will need to provide collateral to pay back the Baltimore small business loan. A collateral is an asset that is used to back the loan. Equipment, inventory and real estate are some of the things that can be used as collateral. The item can be taken if the loan is not paid back.
Some online lenders will approve you without collateral. They will likely require a personal guarantee. If you do not want to use collateral, then you will need to apply for an unsecured business loan.