Many entrepreneurs are frustrated by a lack of funding for their small businesses. Traditional financial institutions typically set extremely high standards for loan qualifications, and if you’re just starting out, you often cannot meet the requirements for documentation, collateral, and high credit scores. The U.S. Small Business Administration assists businesses in securing funding by guaranteeing a portion of the loans.
Here are some tips to ensure that your SBA loan is approved.
Select a Suitable Lender
Although numerous financial institutions accept your application for an SBA loan, not all of them offer this service. SBA Preferred Lenders have the ability to expedite processing times. Experts suggest that you query various lenders before selecting the one that’s right for you, as there are considerable differences in interest rates, terms, and conditions.
Fill Out Your Application
As part of the application procedure, you’ll fill out standard forms and supply necessary auxiliary documentation. On the application, include your FICO credit score and state the precise amount of the loan you need and how you plan to use it. In delineating your requirements, be succinct yet precise. When you have completed the application, the lender you have selected sends it on to the SBA for approval.
Put Together Necessary Documents
Along with the application for an SBA loan, a number of up-to-date documents are required. These include a list of assets, business lease, business license, personal and business tax returns, and personal and business financial statements. Having this paperwork ready ahead of time will expedite your loan application procedure.
Prepare for Your Interview
Before finalizing your SBA loan, lenders usually schedule an interview with you. Be prepared to conduct yourself professionally and back up all the facts listed on your application. Have your company business plan ready, and also a plan on how you expect to repay the loan.
For more advice on obtaining an SBA loan, get in touch with Mossberg Strategic Capital.