Hayward has a progressive economic climate that encourages entrepreneurial thinking. Delancey Street, a premier lender to small business owners, supports entrepreneurs in Hayward with the capital they need to follow through on their visionary business ideas.
We understand that it is not easy to get a small business loan in today’s economy. In fact, it is a complex undertaking that can be divided into four distinct steps: first, you must improve your credit; second, you must assemble all the right financial documentation; third, you must show the lender a comprehensive business plan when trying to convince them to give you a loan; and fourth, you must understand the terms of the loan before accepting it.
Let’s take a closer look at each of these steps.
Improving Your Credit
Before applying for a small business loan, you should improve your credit score. Many items on your credit score may be in inaccurate. When this happens, there’s something you can do about it. It’s not the end of the story.
The law gives you the right to access your credit report and challenge any erroneous entries. So, scrutinize your report to make sure it is accurate.
Next, settle any delinquent debts before you apply for a small business loan. Credit bureaus do make mistakes, but it’s up to you to notice them and ask for a correction. If you don’t, many small errors will lower your credit score.
Since banks and credit unions like to see financial records that show that you have used credit and paid it back, don’t make the mistake of closing any of your old accounts–because these demonstrate all those times when you have paid back something that you bought on credit. You may also want to selectively add credit accounts to improve your track records.
Assembling Your Financial Documentation
Your application package to a lender should look professional. It should not only be attractive in appearance but also accurate and complete.
Besides carefully reviewing your loan application form and any proof of collateral, the bank will want to look at your business plan, your business credit report, your income tax returns, your financial statements, and your accounts receivable and accounts payable.
Talking to a Lender
Make it easy for the bank to approve your request for a loan by providing an excellent business plan that describes your business operations and explains exactly why you need to borrow money. Also, ask the bank what documents they need from you before making an appointment with a loan officer. This will makie it unnecessary for the bank to have to call you up after the meeting to track down any missing documents.
Understanding the Terms of a Loan
Assuming that all goes well and that the bank likes your business plan and is impressed by your meticulous financial documents, then they will make a loan offer.
At this point, it’s essential that you don’t simply take the money. Instead, the smart thing to do is to first scrutinize the terms of the loan. For instance, look at the APR of the loan and not just the interest rate and see if the repayment schedule is realistic. Is it a contract you feel comfortable with? Can you follow everything stipulated in the loan agreement?
Remember, this is not free money. It is money that you are buying. Understand all the terms of the loan and ask questions about anything you’re not sure about before signing.
How We Can Help You
Delancey Street is in the business of helping enterprising people achieve their goals. For this reason, we are open to talking to you and helping you fund your business even if you don’t have good credit.
We are eager to hear your side of the story, and will do our best to accommodate your needs, including providing fast funding (often in just two business days) and developing a flexible repayment plan.
Contact us and apply today. You might be pleasantly surprised to find out how easy it is to start building your business.