Fast business loans Process: Running a business may be expensive; either it be a medium scale or large scale business. Many times the business owner finds himself in need of a quick business loans.
But the real fact here is; it generally takes a long time to get the loan. But there are still some facilities and ways to get fast business loans to solve all your business overhead expenses like employees cost, inventory purchase, etc.
Here in this article we will be discussing some important points which will help you to get quick business loans.
Fast business loans – Important points which will help to get the approval fast
What about your credit history?
Most lenders will look at your previous credit history; whether you have bad credit or good credit score. Therefore, before you go for the application you must keep an eye on your credit score history.
Why you need money? You main objective? Be clear in the application process!
You have to tell your company’s story. You have to be clear on ‘why you need money’? Just simply ask the question to yourself “Why I need money and how I will use it in my company’s growth”.
If the lender firm gets satisfied with your answer; then it will sanction the loan.
Always prefer local lenders-
Instead of going to a national based lender; you must apply to a local lender. This will increase the chance for your loan approval.
There are several local options available like city banks, non-profit micro lenders, online lenders, etc.
The application process-
A detailed business plan is required for getting fast business loans. You must also include financial statements and detailed description of where the loan will be used for.
Your loan repayment statement-
How much you can repay to the lender? What will be the time duration for your loan repayment? You have to mention the repayment amount and time duration in your statement. Will it me monthly, quarterly or annually?
Kindly go through your lenders portfolio and requirements briefly! You can also discuss it with your advisor.
Before application; know your lender’s minimum requirements-
The lender will look at your credit score history, number of years in business and your company’s overturn. Still there are some lenders which provide flexibility to these terms.
Therefore you must know the minimum requirements your lender is seeking. After going through all their terms and conditions, prepare your portfolio and business plan for loan approval.
Have you collected all the related documents?
Whether you are applying to a bank or private lender; you must have a wide range of legal and financial documents ready during the loan application process.
These documents includes-
- Business and personal income tax returns
- Income and bank statements
- Business financial statements
- Commercial lease
- Franchise agreement
- Articles of incorporation
- Business licenses
- Business plan and objectives
The more you have a strong business plan, the fast will be the loan approval process-
You must prepare the business plan by keeping these 2 things in your mind-
- How you will be using that money
- Your capability of repaying the money
Also include these points in your business plan; to make it stronger-
- Your company description
- Description of products or services you offer
- Your management team and employees
- Promotional strategies, sales strategies, marketing strategies
- Estimated profit analysis
Can you provide Collateral?
Generally a collateral is an asset, inventory, real estate docs, etc; which you have to put as a guarantee to your lender. That collateral can be sold or seized by the lender in case if you can’t make the loan repayment.
It is not an essential requirement by many lenders. But it increases the chances for getting the business loan fast.
Hope all these points will help you to increase the chances of getting the loan approved. In the next article I will review some business loan lending companies which are on the top of the market!
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