Things to Consider When Qualifying for a Small Business Loan
With so many Americans rethinking the way they make a living, entrepreneurship remains a popular choice. But there’s a lot to consider, from hiring in this challenging climate to knowing how to qualify for a small business loan. We’ll explain how to get started with these business borrowing basics.
1. Why apply for small business lending?
There are many reasons your business might need a loan. Business borrowing can help startups and established companies alike. From launching a new business to easing your company’s growing pains, these benefits make learning how to qualify for a small business loan worth your time and effort:
- Staffing up
- Buying equipment and/or inventory
- Acquiring real estate to house your business
- Renting more office, warehouse or storefront space
- Being ready to seize opportunities when they arise
From incentivizing great work with bonuses to moving into a bigger space, business borrowing gives you the spending power you need to evolve as a company.
2. What do I need to get a small business loan?
When learning how to qualify for a small business loan, knowing how to instill confidence in lenders is essential. While many smaller companies flourish, many others fail within the first year. These factors boost your approval odds by showing that you’ll be able to repay your debt:
- Steady income or credible projections
- Established business success
- Having a business plan
- Little or no existing debt
- Good personal and business credit ratings
If you can’t meet all these guidelines, it doesn’t mean you won’t be able to obtain a loan. However, lenders need assurance that you will be able to repay the money you borrow. Alternatives like Small Business Administration-backed loans may help you get the funding you need.
3. How to Qualify for a Small Business Loan
Being prepared is a must when applying for a business loan. Be sure to bring the following items to your appointment:
- Business plan
- Financial records, including tax returns
- Business licenses
- Insurance documents
- Personal identification
- Articles of incorporation or organization
Obtaining a copy of your credit report could prove invaluable. You’ll have the opportunity to correct inaccuracies, and you can even work on boosting your credit score if you have time. Paying off small debts can improve your debt-to-credit ratio, which could make you a better credit risk.
Apply For a Small Business Loan Today
Whatever stage your business is in, knowing the answer to the question, “What do I need to get a small business loan?” can help with your business borrowing efforts. Landmark National Bank offers a variety of lending options to help you launch or grow your company. With many bank branches near you, we make it easy to find the funding you need. Stop by your nearest branch, or contact us online today.