Small Business Loans in Columbus, GA
The good news is you are in control of being prepared for the small business loan application process. Here are a few steps you can take to better qualify for small business loans in Columbus, GA.
When you apply for a small business loan, the first thing the loan officer will look at is your credit score. After all, your credit score provides the lender with a snapshot of how you’ve handled credit in the past.
Before you submit an application to any lender, check your personal and business credit reports. Do your reports detail any delinquent accounts? What are your credit scores?
If there are any issues on your credit report that are potential red flags for lenders, you should take care of them immediately. This includes paying off old debt and checking your credit report for inaccuracies.
FICO credit scores for personal accounts fall between 300 points and 850 points. A very poor credit score range is 300 to 579 points. A fair credit score range is 580 to 669 points. A good credit score range is 670 to 739 points. An excellent credit score range is 740 to 799 points. An exceptional credit score range is 800 to 850 points.
Your business credit is equally as important as your personal credit. Business credit scores range from 0 to 100 points. Business credit scores are managed by Equifax, Dun & Bradstreet and Experian.
The credit score requirement depends on the small business lender. It’s a good idea to learn about the requirements before you submit your application.
In order to be a strong small business loan applicant, you must meet the lender’s qualifications. That’s the reason you should find out about the requirements before you apply. By getting the qualifications early, you won’t waste your time applying for a loan that isn’t suitable for your situation.
Minimum criteria varies according to each lender. However, most lenders carefully review your company’s annual revenue, credit scores and time in business. If you’ve recently experienced adverse financial actions such as a bankruptcy, foreclosures, past delinquencies or a repossession, small business lenders may not consider you for a loan.
Loans from the Small Business Administration (SBA) have strict application standards. To be eligible for an SBA loan, you must meet the size, revenue and credit requirements. If you’ve defaulted on a government loan (FHA mortgage or federal student loan) in the past, you may not qualify for an SBA loan.
When you apply for small business loans in Columbus, GA, your lender will require you to provide all types of legal and financial information. These documents will be used to assess your creditworthiness. Documentation includes commercial leases, business / personal tax returns, a copy of your driver’s license, business licenses, a resume, Articles of Incorporation, financial projections and a balance sheet.
It’s important to take time to gather these documents before you submit your application. If the required documentation is missing, you’ll be required to provide it before the lender makes a loan decision.
Since you’re applying for a loan, your lender will require you to demonstrate your ability to repay the loan on time and in full. For that reason, you should create a strong business plan that provides details about your company description, management team, an industry analysis, service / product descriptions and sales strategy.
Getting approved for small business loans requires a serious commitment of time and resources. These tips can help you gather the information that you need to demonstrate your business is worthy of a small business loan.
Businesses require near constant financing in order to remain afloat. It is not uncommon for some companies to ask for loans from banks and other lenders in order to fund some of their ongoing operations. That is why it is so important to know about how to get bad credit business loans in Columbus.
Before You Begin
You have to understand that there is a pre-application process that any borrower ought to go through before they attempt to apply for a loan. Going through this process will help them identify their needs for the money and how they can work to improve their financial situation going forward so as to make it easier to avoid needing to borrow again in the future.
During this stage of borrowing one should try to figure out precisely what their needs are for the money. Are they trying to cover payroll expenses? Are they looking to expand the business outright? These are the kinds of things that a borrower should be able to outline when they step into a lender’s office to discuss the possibility of getting a loan.
Building Up Your Credit
All debtors in Columbus have the legal right to access their credit report once per year for free. Since there are three major credit reporting bureaus, a debtor can spread those free viewings out over the course of the year so as to view a report for free once every four months or so.
The purpose of viewing these reports is to see where your credit is taking a hit in the first place. You may also want to view your reports because there could be things that you need to dispute on the report. It is not uncommon to have errors on a report that cause it to be inaccurate from what the real numbers are. You obviously want to catch this just as quickly as you possibly can so as to avoid any extra heartache over your credit score. Your score can sometimes improve simply by challenging inaccurate information that has been presented on your report.
Laying Out The Game Plan
Everyone has their own unique needs for a loan. In order to convince a lender to send that money over it is sometimes necessary to present a detailed plan for what you are going to do with the money when you get it. You need to show the lender that you are serious about making solid financial choices going forward so that they are more confident that their money will be returned to them with interest in the future.
It is great when you can walk into a lender’s office and have a full layout of what your intentions are with the money that is lent to you. That will allow you to build up confidence in the lender that you are the type of business that they want to lend to.
Reviewing And Understanding Your Documents
You should always review any loan documents that you are presented with by a lender. The lenders like for you to know exactly what you are getting yourself into. You should also have the curiosity to want to know about your loan as well. You need to know payback dates, interest rates, and any other number of factors that related to how your loan is going to operate.
You have every right and expectation to know what is happening with your loan. Thus, you need to take advantage of that right and read over everything. There should be no surprises when you finalize the documents and receive your money. After you have received it and start to use it towards whatever purposes you have for it then you can begin to work on ways to improve your credit for the future.
All in all it is not too hard to get a bad credit loan for business purposes in Columbus, but try to make sure that you do not have to rely on access to this in the future.