There isn’t an iota of doubt that no business venture- whether big or small can survive without requisite amount of capital. Capital is essential for not just setting up a business but also for its survival and growth in the times to come.
Capital is never an issue for big business enterprises because apart from having ample of equity funding, they enjoy constant backing from lenders and bankers. However when it comes to backing a small business venture, the options of funding are reduced to rather a handful bunch.
Advantage Of Small Business Loan
Small businesses can definitely take advantage of the small business loans offered by non-banking institution such as KABBAGE.COM because when compared to banks, these institutions have a rather easy-going lending policies that usually go very well with small business houses.
Yes, securing small business loans from such institutions is comparatively easier but it doesn’t imply that it is a cakewalk. A businessman is required to do his homework even if he is planning to obtain a small business loan from such institutions. In fact, today we are here to give you 5 most useful tips for securing a small business loan from such lenders.
Research is important
Before approaching any lending institution for small business loan, research a little about the market leaders in this industry and make yourself fairly aware about the loans that such lenders tend to offer. A small business loan can come with many strings attached and you need to be aware of all these strings beforehand in order to avoid any confusion at later stages.
A good credit score
Credit score works for your business just like a report card works for a school going kid. Simply put, it highlights your business’s performance which means scoring well on your credit valuation can make you eligible for a worthy small business loan easily. So, get your credit rating done before approaching your lender for loan.
An honest business report
The latest profit and loss account and balance sheet that you handover to your lender speaks volumes about your business. Most of the businessmen make a common mistake of amplifying their profits and indulge in unnecessary window dressing of their financial statements which is a complete no-no. Prepare and submit only genuine and honest financial statements for securing quick loans.
A clear cut projection report
Nothing works more in your favor while obtaining a small business loan than preparing a clear cut projection report of your future cash flows. Prepare a well laid out projection report of your profits and cash flows for the next 12 months and give your potential lenders an insight of your visionary business idea.
Prepare a business resume
A business resume quite resembles an individual resume, the only difference being that the former is prepared to highlight the features of a business entity. A business resume generally consists of your business valuation reports, income tax records, personal credit reports accompanied by bank and financial statements. Don’t forget t submit your business resume while approaching a lender for small business loan as this would surely put a great impression on your lender.
Where do i apply?
You can apply with your bank or use on of these private lenders below:
KABBAGE.COM – #1 Online provider of small business loans. Kabbage puts the power of business growth back in your hands by giving you convenient access to working capital.
Enjoy ongoing access to your line, and take the funds you need day or night. Pay only for what you take and draw against your line as often as once a day.
Select the amount you need and they’ll deposit working capital directly into your bank or PayPal account. No waiting in line.
Requirements: 1+ year in business & $50K annual revenue.
Lines of credit from $2,000 to $100,000.
A+ Rating with the Better Business Bureau