Are you a small business owner looking to learn about business lending fundamentals? Are you interested in learning how a business loan can help propel your business?
As an entrepreneur, you know all too well that it takes work, diligence, and funding to make a business thrive. Let’s examine some fundamentals of business lending and how you can improve your odds of obtaining the small business loan that you need.
Begin the Business Lending Process As Soon As You Can
There’s a very low chance that you will walk into a bank or a credit union, fill out a loan application, and receive the funds right there on the spot. Applying for a business loan and receiving the business lending that you need is a process. Therefore, it is to your advantage to understand that there is a process to applying for a business loan. Your business lending journey may take weeks or even months. So, try not to wait till the last minute to apply for the business loan that you need. Once you identify your need for business lending, ensure that you complete the process in a suitable time-frame for your business to continue to operate.
Take the Time to Deal With Your Credit History
While you may want to separate your personal credit history from your business credit history, there are a vast number of lenders who will want to see your personal credit history during the business lending process. Do you have some worry or apprehension about your personal credit history? Have you made late payments in the past? You may want to spend some time understanding the elements that go into your personal credit history and work with a credit specialist. Your business lending efforts may be hampered a bit due to a low credit score. So, take some time in helping to improve that credit and find out what steps you need to take to secure a business loan in the near future.
Provide a Detailed Plan For Using The Loan
When you’re looking at securing small business loans for your business, you want to take the time to have a detailed plan as to how you will be utilizing the money that is loaned to you. When speaking to the lender who is spearheading your business lending efforts, you want to provide specific information as to how the money you will potentially receive will be spent to propel your business. Will you use the funds to purchase equipment? Will a portion of the monies go toward training? Will the funds be used to purchase a company vehicle? While every business is different, a breakdown of your intentions with the loan will help lenders determine the feasibility of your business lending application.
Honesty and Positivity Will Take You Far
Getting approved for business lending or an SBA loan is no easy task. As an entrepreneur, you have a business idea that now needs funds. Therefore, you want to remain honest as you talk to your business lender and provide all of the information that is asked of you. You are certainly no stranger to challenges. So, when speaking to your lender, address your shortcomings, highlight strengths, and remain positive throughout the business lending process.
Let Lewis & Clark Development Group Help Your Small Business
Whether you have questions about a small business loan, the SBA 504 loan program, or business lending, Lewis and Clark Development Group, your North Dakota business lending professionals, are here to help. We offer a multitude of resources to help you improve your chances of obtaining a small business loan. In addition to business loan programs, we also offer home loan programs, community grants, a home buyer education program, and more. Data indicates that 50% of small businesses are able to survive more than five years or more after opening. How’s that for positivity?
You can do it, and Lewis and Clark Development Group can help you make it happen. Call us today at (701) 667-7600 to have your questions answered and start the process.