With the coronavirus pandemic still unfolding, business loans are more important than ever. Companies of all types are facing unique challenges to stay in motion and a business loan can solve many of their problems.
From asking the right questions to taking a look at your credit history, there are things you can do to avoid common pitfalls and speed up the process.
Ask Yourself the Right Questions
Not being able to answer even basic questions is one most common mistakes that loan applicants make. So, the first step is making sure you can explain why your company needs the money. Then proceed to make yourself other crucial questions such as, What’s your company’s history? What are your future prospects?
Get Advice From Experts
Looking for expert advice is a good idea, especially if this is the first time you apply for a business loan. A financial advisor or coach can help you fine-tune your business pitch to make it more attractive to lenders. They can also help you review some factors like credit score and your financial statements (see below).
Take a Good Look at Your Credit History
Lenders will consider your credit history to determine your risk level as a borrower. Making frequent payments (even if small) and paying your bills on time are ways to improve your credit score in a matter of months. Outstanding loans, cash flow and assets are other factors that lenders consider before making a loan, so make sure to review them as well.
Gather All Your Documents
Be organized. Gather all relevant documents ahead of time. This will streamline the process and serve as proof that you are a reliable person. There’s no such a thing as too much organization when it comes to applying for a loan. If anything, you should strive to be over-prepared. Some of the documents you may need include:
- Business plans
- Legal documents
- Business and personal tax returns
- Business and personal bank and financial statements
- Copies of insurance policies
Gellyfish: Certainty of Execution in Business Loans
Looking for a conventional loan or SBA loan in California, or anywhere in the United States? Gellyfish is here to help. We offer financing solutions with the certainty of execution you need to take your business to the next level.
Contact us today by email (info@gellyfishcommercial.com), telephone (877-800-4493), or social media (Facebook, Twitter, LinkedIn), to schedule a free consultation or to learn more about our full range of financing options.
