Being capable of receiving a small business loan is a huge step for any business owner. With the additional capital, you can enable your business to grow. Whether it’s new projects, purchasing equipment, or funding a new expansion, business loans are a go-to funding source.
Delancey Street is a small business lender that has many financing options. Some of these include merchant cash advances, business loans, and lines of credit. They offer up to two million dollars per business no matter what industry. Applying for a loan with Delancey Street allows for a fast approval time, flexible repayment options, and quick funding. Unlike other institutions, there are no restrictions on what you can spend your loan money on. Even borrowers with bad credit are accepted for small business loans.
Assess The True Needs Of Your Business
Before applying for a small business loan you should take some time to assess the true financial needs of your business. There are many different types of funding sources available and loans are only one of them. By taking the time to understand what the financial goals of your business are, you can determine if a small business loan is the best primary source of funding for your business ventures.
Know Your Credit Score And Report
A credit score is a grading of how successful a person or business is with their financial dealings. Those with a high credit score pay their bills on time and don’t take on more debt than they can comfortably handle. Those with a poor credit score tend to make payments late and even default on loans. These borrowers tend to take out more debt than they can safely manage.
When applying for a small business loan, the lender is going to look at both your personal credit score and that of your business. Having both in a positive state can ensure your best chances of getting approved. If you’re not sure what your credit score currently is, you should print out your credit report from all the top three credit reporting bureaus. Also, obtain a copy of your business’s credit report, that way you know where your business stands.
Gather Your Financial Statements
The backbone of the success or failure of any business comes down to its financial statements. These are known as the balance sheet, income statement, and cash flow statement. All of these documents give both the business owner and the lender a true picture of the financial health of a business.
You will, without a doubt, have to present all three of these current documents with your loan application for approval. It’s a good idea to get them prepared ahead of time so that you can streamline the actual loan approval process. Don’t wait until the loan specialist calls and requests them as it will take time to prepare the documents and submit them to the lender for approval, therefore delaying your loan acceptance.
Actually Understand The Terms Of Your Loan
Once you get your loan approval, you’ll be presented with the loan agreement. This is the paperwork that specifies the principal loan amount, interest rate, term, origination fees, late fees, default process, repayment schedule, payment amount, and so forth. This document specifically covers every part of the loan from how you get the money to how you must pay back the money. It’s vital that you understand what is expected of your business before agreeing to the terms outlined by the lender.
It’s not uncommon for some financial lingo to confuse the best of small business owners. Loan underwriters get paid to be financially punctual. If you have trouble understanding the financial terms that are utilized in the initial loan contract provided by the lender, you should seek help. Whether that help is from online resources, your professional accountant, or the lender, any assistance is better than going into a loan deal blind.