small business loans in jacksonville fl
Your personal credit score can make the different in whether or not you are approved for small business loans in Jacksonville FL, so you’ll want to raise your score if possible. The range is from 300 to 850 and it’s predicated on how you’ve paid your debts in the past. Your credit score is also called a FICO score, which considers how much debt you have, your payment history, the amount of time you have had credit, the types of credit you have and recent inquiries into you credit. Of the factors mentioned, your payment history is the most important because it represents 35% of your FICO score.
In order to become a strong applicant, you’ll need to both understand and meet the lender’s minimum qualifications. As a matter of fact, you can increase your chances of getting approved if you exceed the requirements, which often involves your annual revenue, credit scores and the amount of time you’ve been in business. If you’re interested in an SBA loan, then you should be aware that the minimum requirements can be tougher than other lenders. For instance, you might have to have higher personal and business credit scores. Additionally, the SBA has a list of ineligible businesses that include financial, real estate and insurance companies, among others.
If all of this sounds a bit overwhelming, you can relax a bit because there’s another option; online small business loans. Online lenders tend to be more lenient. Just keep in mind that you might pay a bit more for the ease of obtaining an online small business loan.
Perhaps one of the easiest aspects of preparing to apply for small business loans in Jacksonville FL is compiling the necessary documentation. For example, many lenders require you to provide Articles of Incorporation, business licenses, personal and business income tax returns, income statement, a photo of your driver’s license, balance sheet, personal and business bank statements and commercial leases. You might also have to provide a copy of your resume to demonstrate your related business and management experience. If you’re interested in a more streamlined lending process, then an online loan might be a better choice for you.
You may already have a business plan that details your mission, vision, strategy, financial projections and other key aspects of your business. If not, you’ll need to create one that sufficiently showcases your plan for increasing profits. Here are some of the elements that your business plan should include: Company overview, management team, product and/or service description, sales and marketing strategy, operations plan and industry analysis. Lenders may also require a SWOT analysis that details the strengths, weaknesses, opportunities and threats to the business.
Last but not least is collateral, which lenders may require to back your small business loan. If you don’t have collateral to offer, you can inquire about other options, such as unsecured business loans.
Delancey Street offers a wide variety of financial products to help you get the capital your business needs to grow in this ever-changing culture. A few of the most popular products we offer are merchant cash advances, lines of credit, and small business loans. We approve loans for all types of businesses up to two million dollars each. With Delancey, you can expect a quick application process, fast funding, and flexible repayment programs to fit the current income of your business.
Deciding To Get A Small Business Loan
It’s vital to realize that a small business loan is a big undertaking for any business owner. It’s a financial commitment that you’re going to make with the lender. You should be sure that you’re fully capable of repaying the loan debt as well as interest comfortably. You don’t want to overstretch the financial abilities of your business.
Along with deciding if your business can financially handle a small business loan, you should be clear on your intentions for the loan money. Is the purpose of your loan application for funding payroll, an expansion, a new project, new equipment, consolidating old business loans, or something else? Start with discovering the actual purpose of your loan. This will reveal to you how much you’ll need to ask for when applying for credit.
A Closer Look At Your Credit Scores
Loans are awarded based on credit scores. This includes both your personal credit score and that of your business. A credit score is a number that effectively tells a lender if you’re a responsible borrower or not. Since there are a plethora of resources online to explain the ins and outs of the credit score grading system, we’re not going to go into too much detail here. However, we are going to take a look at how the opposite ends of the credit spectrum play a role in your loan application.
Those business owners with a high credit score are more likely to receive the lowest interest rates on their small business loan. This is because they are considered less risky for the lender. Those with a good credit score have a strong history of paying their bills on time and not taking on more debt than they can effectively manage. Those with a poor credit score may not get approved for the loan or will be approved with higher interest rates for their loan terms. This is because those with a low credit score are considered more risky borrowers with a higher chance of defaulting on the loan.
It’s a great idea to take some time and pull your personal credit scores. See where you stand on the scale of poor to great. If you’re high on the scale, it’s time to apply for a loan. If you’re on the lower end of the scale, you may want to spend a few months building up your credit score before applying for a small business loan so you can receive better rates. Realize that a borrower with a great credit score who was offered the best rate possible on a small business loan is going to save thousands of dollars in interest as compared to a poor credit score borrower who received a higher interest rate on their loan.
Your Business Finances
Before any lending institution is going to give you money in the form of a small business loan, they’re going to want to assess the financial health of your business. They do this by evaluating your financial statements. These include your cash flow statement, balance sheet, and income statement. It’s ideal to have these documents gathered up into an easy-to-read portfolio. This way they’re available at the time you submit your application. Otherwise, you may notice a delay in your application approval while a loan specialist follows up with you to get these financial statements.