How to Get Approved for a 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 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 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 a 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 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 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!