Qualify for small business loans requires not just a personal credit history but often either a business credit history or a detailed business plan that will demonstrate to a lender just why they should lend money to you. This will require more paperwork than just filling in a few items of personal information on a personal credit application. To help small business owners, both current and future, understand what you might need to do to apply for small business loans in Columbus Ohio, here is a brief compilation of things to keep in mind before or during your application. Being very prepared at the beginning of the application will not only increase your chances of getting a small business loan, but it will save you a lot of time.
Applying for Small Business Loans in Columbus Ohio
Before your application, you’ll want to obtain a clear business credit score – which ranges from 0 to 100 – from the three business bureaus: Experian, Equifax and Dun & Bradstreet. Personal scores range from 300 to 850, and you can request those from the three personal bureaus. Never take your credit score for granted! Remember that one in four credit reports will contain errors that might damage your credit score and limit your ability to get a personal or small business loan. Because of this, it’s wise to diligently make sure that your credit report is accurate.
Everything look okay on your reports? Well, there’s still more for you to take care of. Once you’ve confirmed that your personal and business credit scores are accurate, it’s time to do your document gathering. Businesses need more than just a credit score to qualify for small business loans in Columbus Ohio. You’re going to need to gather documents, both financial and legal, to show that your business has a financial plan for the future. Lending agencies like to see how you’ve managed your money in the past, so past tax documents, financial statements, income statements, and more compile the list of things that a lending agency might want to see before shelling over money to your small business.
Always keep “minimum requirements” in mind as well. Sometimes a lender will want a minimum credit score before approving your loan. They might require a certain kind of collateral. And they may not be willing to lend to first time small business owners who don’t have much of a credit history. You can save yourself a lot of time and grief by looking clearly at a lending agent’s minimum requirements and qualifications. If you don’t fit the bill, it’s time to look for another lender.
If you’re not having much luck with traditional business loans through banks or the Small Business Administration – both of which require tons of paperwork and documentation – then you might want to turn to an online business loan agency. Their requirements and qualifications are often greatly reduced from that of the average bank or SBA loan.
Apply for Small Business Loans Today
Sometimes the only way to start a small business is through a loan, and there are certainly a lot of agencies out there that love to lend to folks who have innovative business models and ideas. Before you get the loan, though, you’ll need to do your document gathering and credit score homework. Make sure that there’s not an error on your credit score to hold you back, gather up your business documents and plans, and apply for a small business loan that can help you create the dream of your business. Your customers will thank you for it.