Acquiring a small business loan is easier than you think. As a business owner, you may feel that you have limited options due to the stringent documentation and requirement to show healthy balance sheets. You have a great business idea, a good team and a business that is growing slowly but gradually. The only obstacle is that you do not have funds to market your business.
With more funds, you can promote your business and take it to the next level of achieving profitability. There are small financial lenders that are offering loans of $300,000 or more through a simple online application and without any collateral.
Here are a few preparation steps that will help you acquire a small business loan:
1. Know your business and the amount you need
You should be prepared with every detail of your business from its operations to its financial statement. Do not be worried about earning large amounts of revenue. You need to prove that your cashflow is healthy and that with the loan you can achieve more with your business. To acquire a small business loan, you can be successful with knowing exactly the amount you need and what it will be used for. The lender will definitely ask for the amount you need and how the loan will be spent. Avoid underestimating the amount you need, as this will result in financial bottlenecks down the road.
2. Research your options
Do not give up that easy. Many small financial institutions can help you grow your business. Do your research and learn about the various options available. Try to find a financial institution that does not ask for collateral or to complete an extensive application. Selective institutions make it easy to apply with their online option. An online application is simple and less stressful than having to attend several face-to-face meetings to find out if you are eligible. Your loan can be approved in 24 hours. This way you can focus on your business and move quickly in strengthening your business opportunities.
3. Look at the criteria and requirements for each institution
Many small financial lenders list the qualifying criteria on their websites. Compare the criteria with your researched options. This way you can determine the one that best suits your needs and is likely to approve your request. Look for financial institutions that do not require a credit score or collateral. Select a financial institution that basis your eligibility on your positive cashflow and ability to make payments. These institutions may offer easy and flexible payment plans that put you in control of your business finances.
4. Prepare a business plan
Even if the financial institution does not ask for your business plan, they might ask you questions about your business. You should be an expert with all your business details including market potential, competition, industry opportunities, risk management and financial strength. Be well prepared to answer any questions asked by the lender. This will demonstrate your confidence that will ultimately convince the lender you are highly capable of managing and running your business.
5. Prepare a thorough loan application package
Your loan package is the final and critical step to successfully securing your small business loan. Have all your paperwork updated and ready for uploading. Check your file size to ensure your documents can be easily uploaded. Have your resume and background information ready as well. Make sure all the information is submitted as requested. Complete a checklist of the documents needed to confirm you covered and met all the requirements. Also, read about the financial institution’s policies to understand their methods of securing confidential and personal information.