It’s not always easy to get a small business loan. This can be especially frustrating when you’re just starting out and have few assets. Although we can never guarantee results when you apply for a loan, here are five tips that can increase your chances of approval:
- Determine your purpose for needing small business funding. If you’re just launching your start-up, you probably need the money for that. Existing business owners might want funds on hand to meet daily expenses when cash flow gets low, grow their business, or have a financial cushion in case of emergency.
- Determine what type of small business funding you need: You probably know by now that gaining approval for a business loan as a company without an established history is nearly impossible. That is because lenders require a positive cash flow history. If you’re just starting out, your most likely options include personal credit cards, crowdfunding, personal loans, or contributions from family and friends. As you gain a bit of history, you may qualify for bank loans, Small Business Administration loans, and more.
- Determine the type of lender you want to work with: Remember that banks aren’t the only options for small business funding. Credit unions and finance companies like OneClick Commercial Funding are just two additional possibilities.
- Determine the type of small business funding you qualify for: To do this, you need to know your credit score. You can obtain a free copy of your personal credit report annually from all three major credit reporting agencies. The goal is to establish enough of payment history for business credit reporting agencies to pick up your information.
- Gather necessary documentation: After deciding the previous four items, gather the documents you need for small business funding. These typically include a profit and loss statement, personal and business tax returns, financial documents, and legal documents for your business.
OneClick Commercial Funding is here for you when you’re ready to explore your alternative financing options. Please contact us today.