Starting a business is an exciting step and can lead to financial freedom. While there can be tremendous upsides to owning a business, becoming an entrepreneur often involves struggle and financial risk. The overwhelming majority of businesses require capital. When the need to buy equipment, rent or purchase a physical location, or invest in advertising arises, business owners must come up with a way to afford these business needs. People who have savings when the start a business may opt to use the money saved to cover business costs. Others are able to borrow money from a family member. Still, many small business owners secure a loan to help them afford what they need to grow and expand. When looking for a small business loan, there are several factors entrepreneurs should consider.
Having a Clear Purpose for the Loan
Loans must be repaid. Having a clear plan for how the money will be used can help the business make the most of the financial help while allowing the lender to feel more confident in approving the loan. Receiving a large sum of money without a plan for how the money will be applied to the business can be a recipe for disaster when it comes to borrowing money that must be repaid. Lenders are much more likely to extend a loan to a business owner that has a clear, actionable plan in place and a proven track record of timely repayment.
The Importance of a Satisfactory Credit Profile
For businesses that are just starting out, lenders will usually look at the business’ credit profile as well as the business owner’s personal credit. Many small business owners are completely unaware of their business credit profile. Avoiding this pitfall from the beginning by concentrating on building a positive business and personal credit history will only help the business later on should the need to borrow money arise.
Finding a Loan that Fits the Business’ Needs
All business lenders are not necessarily created equally. Determining the size, purpose of the loan, and the time frame within which the business would like to receive and repay it can help businesses determine whether a lender or individual loan product is a good fit. Business loans can either be short-term or long-term. Therefore, business owners should keep these options in mind when searching for a lender who offers the most appropriate loan and a payment schedule that is most feasible.
Length of the Application Process
It is always best to plan ahead when considering taking out a business loan. Some lenders have an extensive process that can take a couple days, several weeks, or even months, depending on how much capital the customer would like to borrow and the purpose for which borrower would like to use the financing. Delancey Street offers Wisconsin businesses a fast approval process through which the business may receive funding in as few as two days. With all lenders, the timing of the process largely depends on the applicant’s ability to quickly assemble the required information and documents and to present the lender with a professional application packet.
Efficient, Flexible Lending Solution for Wisconsin Businesses
Delancey Street offers fast, flexible loans to cover virtually any business expense that may arise. We understand that every business owner has a past, and we are able to work with credit histories that are imperfect. Our aim is to help businesses achieve their goals and rise to the next level; therefore, we accept businesses with a variety of cash flow structures and lending needs. With proper planning and forethought, the loan process can be seamless, and business owners can have the funding they need to grow and expand in a matter of days.