How to Prepare Yourself for a Business Loan
Getting a loan for your business can be a daunting task. There’s a lot of information needed, a great deal of planning to do, and a lot at stake. There are plenty of things you can do before you apply in order to prepare yourself for a business loan, effectively eliminating most of the surprises that frequently come up during the application process.
Don’t Wait Too Long
Don’t wait until your business is in dire need of money before you begin filling out business loan applications. It takes time to get a loan closed, and banks are less likely to hand over cash to a business that’s already in dire straits.
Check Your Credit
The first thing you should do before applying for a business loan is to check both your personal and business credit reports. Contact the credit reporting agencies to fix any inaccuracies. You might consider taking any feasible actions that can bring up your credit scores quickly.
Get Your Stuff Together
There’s always a ton of paperwork associated with big loans. There are many documents you need to gather including your tax returns, W-2s, bank statements, and any financial records associated with your business.
Many lenders also ask that business loan applicants hand over a resume to verify that they have the experience required to run a successful business. Getting all of these items together ahead of time will save you a lot of stress come application time.
Preparing an Business Plan Can Help
A completed business plan can be helpful when applying for a business loan. You’ll need to create projected financial statements such as profit/loss reports and cash flow statements in order to give the lender a good idea of what to expect from your business in the future. If you’re not sure what all you need to include in your business plan, check here for templates you can use to make sure you’re on the right track.
Once you’ve completed your business plan, you’d be wise to employ a professional editor or hand it over to a grammar conscious friend to check it over. Typos or misplaced punctuation marks don’t make a great impression!
Though not all business loans will require collateral, some do. Collateral is essentially something offered in security for the repayment of the loan. Consider ahead of time what assets you have to offer if the bank requests that you put up collateral and be prepared to provide documentation of the assets.
Don’t settle for the first loan offered to you. Find the right interest rate, terms, and repayment schedule for your business. Prepare yourself for a business loan and get the right product for you at the right price. That’s where Plousio can help! We make 70+ lenders compete for your business.
Other Useful Resources By Plousio
- What is a business loan?
- Credit Score Explained
- Why borrow money to purchase business equipment?
- Business Loan Underwriting Explained
- Interest Rates & Factor Rates Explained
- Why business loans get declined
- Business bank account requirements for loans
- Preparing for a business loan
- Getting approved for a business loan
- How to qualify for a business line of credit?
How Does Plousio Work?
Plousio makes it easy to find a great small business loan with the most competitive rates. Simply answer a few questions, select a lender and fill out our account creation form and you’ll start receiving new offers right away! With 3 easy steps, you can get your death care business funded!
Step #1: Apply online or call 1-508-848-0534
Step #2: Receive the most competitive offers
Step #3: Get funded within 24 ~ 48 hours
Contact a Plousio Funding Adviser Today
If you need help with determining your funding eligibility or preparing application and documents, please contact our funding adviser today. Plousio funding advisers pride themselves in transparency and non-aggressive communication practices. They are not here to make sales quotas, instead, focus on helping you every step along the way of your funding process. In the unlikely event, you do not think that Plousio is the right solution for you, just let us know – No problem! We promise we wont be calling you 5 times a day like some other companies do.