3 Tips for Acquiring A Small Business Loan

Many small business owners find that at some point in their business’s lifespan they are in need of a little extra cash. The reasons for this sudden influx of money will vary from business to business, but there is one thing they all have in common: their business likely won’t survive without it. And that’s where small business loans come in. However, getting a small business loan isn’t necessarily as easy as getting a car loan or even a home loan. So to help you get the money you need to keep your business running smoothly, here are three tips for acquiring a small business loan.

Getting The Right Loan For Your Business

Because there are many different types of businesses that require money in various ways, there are multiple types of business loans your company could apply for. Just because someone you know got a certain type of business loan doesn’t mean that is the one that will be best for your business as well.

When deciding which type of loan you should apply for, Chad Brooks, a contributor to Business News Daily, shares that businesses needing money now should generally look for cash advances while those wanting to secure a low interest rate should apply for SBA or bank loans. Be sure you do your homework on the type of loan that best fits your company before you get too far into the application process.


Ready Your Finances

In order to get the optimal small business loan, you’re going to have to be prepared on the administrative side. This means having all things financial in order with your business. According to Mary Ellen Biery, a contributor to Forbes.com, lenders will generally want to look at at least the last three years of financials your business has as well as any information you can give about the financial future of your business. And, unlike with car loans or some home loan, your small business loan will likely require a decent down payment, sometimes up to 20 percent. This means you’ll likely need to be prepping for your loan application for a bit before you’re able to apply and get approved.


Go Above and Beyond

While you might think that the approval process for a small business loan is very cold and calculated, Marla Tabaka, a contributor to Inc.com, shares that it’s often the businesses that are able to portray the human side of their company that finds the most success is getting small business loans. This can be done by talking about the people within your business, the industry in which you’re working, or how you plan to use the money from your loan. Don’t be afraid to let your personality shine through during the application process.

If you’re contemplating applying for a small business loan in the future, consider the tips mentioned above before submitting your final application to your potential lender.


Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.