Getting Approved For a Business Loan
When it comes to applying – and getting approved – for your small-business loan, the key to success is preparation. Save yourself precious time and aggravation by familiarizing yourself with the minimum qualifications and requirements of each loan product to determine whether you can meet its criteria before applying.
- Merchant Cash Advance
- Business Line of Credit
- Short Term Business Loan
- Equipment Finance Loan
- Revenue Based Advance
- Account Receivable Finance
- SBA Loan
- Startup Financing Solutions
Assuming you’ve done this work, here are three reasons business loans get approved.
You have high-quality cash flow.
Lenders are most concerned about your ability to repay them. If your current and forecasted financials show you have enough cash flow for your day-to-day business expenses as well as the new loan payments, you put yourself in a good position for approval. A solid business plan that also describes what you’ll use the loan for and how it will increase revenue will further strengthen your application.
You have sufficient collateral.
Collateral is a physical asset – such as real estate, equipment, or inventory – that most lenders require from small businesses in order to guarantee their loan. It gives the lender security. If your business ends up failing, the lender can recoup its money by seizing and selling whatever you put up for collateral.
Some lenders that do not require collateral will want a personal guarantee, which puts your personal assets – and credit score – on the line. Another form of collateral is a blanket lien on all your business assets, which allows the lender to take those assets to make good on the loan should you fail to repay. If you have sufficient collateral to cover the debt, it’s likely your business loan request will be approved.
You have good business – and personal – credit.
If you’ve built up excellent business credit – and have a solid personal credit score – you will likely be approved for a loan. This is why establishing good business credit early on is helpful when it comes to opening financing doors in the future. Not only do you build a good connection with a specific lender, but you’re able to demonstrate a history of timely payments and staying within your limit. A small-business lender may additionally, or alternatively, wish to see your personal credit score to determine how you manage debt, so it’s good to keep both your business and personal credit scores as high as possible.
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.