5 Hacks To Help You Get A Business Loan in 24 Hours
As a business owner, you know better than anyone that things can come up unexpectedly, and circumstances can change on a dime. During these moments, having secure finances can be the difference between your business expanding vs. failing. And this is where business loans can help.
You may be wondering, how do I get a business loan? While previously, business owners were constrained by the limited reach of traditional banks – especially on the heels of the financial crisis – things have changed. Gone are the days of having to wait weeks or longer for a decision on your business loan application with the local bank. It’s a good thing, too, because having to wait that long can really crimp the style of a business owner trying to reach specific goals.
Thankfully, the rise of online lenders has made it their business to know how to acquire a small business loan far easier. They have opened up access to capital and enabled faster approval times so that you can be on your way to securing a business loan within a day. These flexible business options can make a difference when covering an unexpected or forgotten expense, and not force you to settle for less than ideal terms or sacrifice equity to backers.
So whether it’s a gap in cash flow or ambitious expansion and hiring plans, following these steps could be the easiest way to get a business loan sooner than later.
1. How do I create a game plan to get a business loan?
As you consider how to get a new business loan, be sure, and do your homework. To set yourself up for success, you should have a grasp on a few dynamics. These include the community you want to operate in, your consumer market, and what sets you apart from the competition.
The lender may not delve into the intricacies of every financial decision you’ve made for the past 20 years. But, they will still want to know how the loan will help you to move closer to achieving your goal and how it can impact profits. Be ready.
2. Get your documents in order
Haste makes waste, so get your paperwork in order before you approach a lender. While you can apply to an online lender in minutes, a loan decision may come quickly. As such paydayloansohio.net/cities/marion/, you can have the funds in your bank account in a blink of an eye. But, there is some behind-the-scenes work to be done.
The easiest way to get a business loan is to prepare documents ahead of time. This can include your business tax returns for at least the past two years, personal tax returns for the past year, and business bank statements for the past six months. Your loan specialist should communicate to you what other documentation may be needed to get your business loan. If asked to securely link your bank account to the loan application, opt-in for faster processing.
3. Get a credit check before you apply
Know both your business and personal credit scores before your potential lender does. This means you’ll probably have to request a copy of both your business and personal credit reports.
Dispute any misinformation because the higher your scores, the better your chances of getting a business loan. Funding Circle recommends that if your credit score is below 600, work to bolster it before approaching potential lenders. You can obtain a copy of your business credit report for a fee by the three major providers: Dun & Bradstreet, Equifax, and Experian.