The pursuit of growth capital is exciting, and you want to make the process go as quickly and easily as possible. To avoid delays, make sure you’re fully prepared before applying for a business loan.
Here are five key things to prepare before consulting a small business lender:
- Business Plan
Not all small business lenders who ask for your business plan will read it page by page. But it’s a necessary document to get a small business loan, and it helps you internalize your vision for the business. After creating a compelling business plan, you’ll be able to quickly and succinctly answer questions and discuss your company’s plans for the future.
An additional tip: If you focus on one area, spend as much time as possible on describing leadership and other key team members. If someone reads just one section of your business plan, they’ll read about the people behind your products and services.
- Loan Purpose
Any small business lender will want to know exactly what the loan proceeds will go toward. Do you need to stabilize cash flow? Hire new employees? Expand to a new business location?
The lack of a specific purpose for loan proceeds is a red flag for small business lenders. It gives the appearance of disorganization and a directionless vision.
Also, think about your ideal loan structure before applying. How much money are you seeking? What is your ideal term? What would be a manageable interest rate? You may not get your desired structure, but it’s a good starting point for discussing and considering the possibilities for your small business loan.
- Financial Statements
It’s important to describe where your business has been financially and where you see it going in the future. Prepare your financial documents – balance sheet, income statement, tax returns and bank statements – that put your financial history in black and white.
Additionally, you should create realistic financial projections that paint a picture of where you see your business going in the future. These projections should highlight your need for the financing you seek.
Credit Report
You should always monitor your company’s credit. Pull a business credit report before seeking a loan, and prepare explanations for all that it includes — especially late payments and other blemishes. Any small business lender will want to know how much credit you’ve accessed in the past, as well as how you’ve handled it.
Legal Documents
Know how your business is legally organized — its legal name, its members, etc. This information is not always top of mind, but it should be included in articles of incorporation or other documents used to form your business. Also obtain copies of any existing commercial leases, franchise agreements and other binding documents.
Getting organized for a loan application doesn’t have to be complicated. At Fundation, we make the small business lending process as easy as possible. If you so choose, our online application system can pull relevant legal and financial documents for your convenience— with your permission, of course.
This helps everyone focus on the most important aspect of the small business loan application — finding a way to get you the growth capital needed to see your business reach its full potential.
Are you looking for a small business lender that will provide you with both the financing and advice to help your company reach new heights? Contact Fundation today and complete our streamlined application process in less than 10 minutes!
More News
Visa boasts of fintech Fast Track success
May 14, 2020
New York City Credit Program Aims to Help Female Entrepreneurs
November 14, 2019
Import/Export SMBs Introduced to Fintech Lending Options
August 7, 2019
Online Loans You Can Take To The Bank
April 23, 2019
Case study: Citizens Bank – fintech friendly
February 19, 2019
2018 Best of FinXTech Awards Finalists Announced
March 29, 2018
Citizens Digitizes SMB Lending Process With Fundation
November 6, 2017
Park Bank Announces Expansion of Small Business Lending Efforts
November 2, 2017
Defining, Adopting and Executing on Fintech
September 5, 2017
Fundation CEO Talks Partnership Strategy
August 4, 2017
Fundation works with, not in place of, banks
April 3, 2017
Fundation Secures Credit Facility from MidCap Financial
March 21, 2017
Where the money is: A small business lending gap
March 3, 2017
Q&A Break with Sam Graziano, CEO of Fundation
January 18, 2017
Fintech Ideas Festival Rapid Fire Emerging Tech Panel
January 17, 2017
Citizens Bank Next To Take The Leap With Alt-Lender
December 21, 2016
Regions Eyes Small Business Loans in Latest Tech Deal
September 22, 2016
Is The Future Of Alt-Lending Playing Well With Others?
August 30, 2016
Best Alternative Small Business Loans 2016
May 27, 2016
Frenemies In the Marketplace
April 29, 2016
Bigger Bang In Small Biz
April 1, 2016
How To Get A Small Business Loan (Webinar)
March 29, 2016
Fundation Expands Small Business Lending
March 4, 2016
Top 25 Financial Blogs for Small Businesses – 2016
February 22, 2016
CEO Sam Graziano on MSNBC’s Your Business
February 18, 2016
Bank Branches Are Still Good for at Least One Thing
February 17, 2016
Fundation Named Finalist In 2016 Stevie® Awards
February 12, 2016
A “Meaningful” Platform-Bank Partnership?
January 6, 2016
Late on a Loan Payment? How To Do Damage Control
October 21, 2015
Regions Inks Unique Deal to Tap Booming Fintech Industry
October 13, 2015
Best Alternative Small Business Loans – 2015
October 6, 2015
Fintech strikes again; Regions partners with start-up
October 5, 2015
Investing in Alternative Lending?
May 1, 2015