Seeking a Small Business Loan? How to Increase Your Chances of Success


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Small businesses are in a much stronger position now than they were only a few years ago, and small businesses currently make up 90% of US businesses. In 2013, new business funding increased by 10.4%, so now is a great time to pursue a loan to give your small business that extra boost.

However, funding available for small businesses is still highly competitive, and you have to make sure you give yourself your best chance of success. Entrepreneurs that prepare for the process of seeking new business funding are more likely to get the loans they need.

There are several ways you can give yourself a better chance in the new business funding market:

Be ready to show your lender all the financial information available on your company. This includes your personal finances, future growth plans, and the company’s financial history. This allows a bank to understand your financial situation and will speed up the process of funding a start up. The more information you have, the more confident lenders will be that you’ll handle their loans responsibly, and the easier your loan will get approved.

Have other detailed information available as well. The bank will want to know exactly how you want to use your start up loans for small business. Detail equipment prices, rental fees, and total capital you’re seeking. Your lender will appreciate having this information up front and they’ll remember how attentive you were to detail.

There are many organizations that offer loans for start up businesses. Compile a list of your top five through research and shop around even if one approves you for a loan. You may be able to get a better rate from someone else. Remember, if one lender declines you, another might make a different call. Don’t give up to quickly. Use these rejections to adjust your approach with the next lender. Community lenders are often your best option. They know the local market and can help you navigate it.

If you’re still having a hard time getting new business funding, consider consulting Small Business Administration assistance. SBA lenders can counsel you through the loan process, giving you a better chance of success.

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