One of the biggest hurdles as well as questions for any budding entrepreneur is usually: “what do I need in order to get a small business loan ?” Well, you don’t need a masters degree to realize times are tough in the business world these days. Banks are cutting back on inventory loans and any other types of loans unless you have a FICO score on the north side of 750, ergo, start-up loans are, for the most part, non-existent due to the fact that those type of loans are the most risky a bank or credit union can undertake.
Even the Small Business Administration (SBA) who until recently, was one of the most generous lenders in the marketplace to guarantee a loan via the SBA loan program. However, the small business loan money ship has sailed, but there is another ship still waiting at the dock to assist entrepreneur wannabe’s if you are prepared and have the 4C’s; meaning you’ll have a far better chance of success of getting that loan.
What Your Lender Will Require From An Applicant!
In researching for a small business loan you should salt away in your brain items any lender wants to know:
- How much money will you need?
- How are you going to pay it back?
- How your lender can be protected if you don’t pay them back?
In reality that’s about it in a nutshell, folks. Sounds simple, huh! But the real trick is figuring out what your lender requires in terms of paperwork and other requirements. So before you dip your toe in the shallow end of the small business loan pool, know and understand the 4C’s.
The SBA Isn’t The Only “Money Boat” With The Financial Parachutes!
Also, just because this article has touted the Small Business Association as a lender guarantor, that’s not the only “money ship” out there in financial land who has the money parachutes. Yet, if you want to check the SBA for a small business loan, the most common loan program they offer for financial help is the SBA 7(a) program. When you contact them some of the requirements will be as follows:
- Eligibility qualifications
- Use of proceeds
- Repayment terms and other conditions
- Loan amount, terms, fees and rate of interest
- Application checklist
- Loan processing turn-around time
- Types of 7(a) loans that are available
Take advantage of all of the opportunities that you have to bring in business. Seek out all of the chances that you have to promote your business. Use the money that you borrowed to grow your business.