When you start the process of a business loan application, probably it’s because you already know this: money is the one thing that may hold a small business back from growth. Whether it’s expanding an operation, hiring new staff members or buying new equipment, small business operators often need to borrow money. Just how does one go about bullet-proofing their loan application and increasing the likelihood of approval? Along with a stellar credit report (for yourself and your business), consider these five simple things which can provide a needed boost to your business loan application:
5 Tips to Improve Your Chances to Get a Business Loan
1.Understand Your Borrowing Needs
When you apply for a business loan, it’s important to make sure you have a full understanding of how much money you need, how long you will need the money and the purpose of the loan. When you take this information with you from the start, your lender will know that you’ve taken the time to evaluate your specific needs. They will know you’re not just applying for a loan to have extra cash on hand. Learn here how to determine if a business loan is the right fit for your business. And to get motivated, read here the perks of getting a small business loan.
At Camino Financial, we do most of that work for you. We make an effort to get to know you and your small business. When you apply for one of our small business loans online, your first step will be to answer a few simple questions about your small business in our short application. In just a few seconds you will find out if you prequalify for a small business loan. Then, a small business loan specialist will review your options with you. Once you tell us your story and help us understand your small business, we will explain your funding options. Is that simple!
2. Make Your Resume Shine
When preparing a loan application package, make sure to include a resume for owners and executive officers of the company. Keep in mind, lenders will want to know that the people running the business have a solid understanding of the business. They need to see you understand how your businesses operate and you can handle your business finances. The stronger the resumes, the fewer red flags for the lender. This is particularly true if this is your first round of financing.
Again, at Camino Financial we make this process much easier. Once you and your loan specialist have reviewed together the specific needs of your business, he or she will already have a clear picture of your company, so a resume won’t be needed. We simply cut back the time and paper involved in a traditional small business loan application.
3. Dust Off and Polish That Business Plan
When getting ready for a loan application, having a business plan is a must. Business plans should be crafted for all businesses, regardless of their size. Business plans provide a “blueprint” for a business; owners should have their company goals and objectives clearly spelled out. In addition, the plan should show what path the company is taking towards meeting these goals and objectives. When applying for a business loan, make sure you’ve reviewed your original plan and modified any goals and objectives that have been abandoned. Remember, a business plan is a working document; it’s not set in stone. Not sure where to start? Learn here how to prepare your business plan.
Like with your business resume, a business plan is not needed when you apply online for one of the Camino Financial small business loans. Your basic financial records are the only documents we require to work on getting you the small business loan that is the best fit for you. Let’s see that in the next step.
4. Understand What Your Profit and Loss Statements Mean
One of the most important things you must demonstrate to a lender is your ability to repay the loan you’re asking for. Lenders may ask for recent tax returns, bank statements, and other supporting documents. However, you must have a working profit and loss statement to show along with your business loan application. To be effective, your profit and loss statement must show that your company follows a specific bookkeeping process. If you’ve thrown together a last-minute statement to show your cash flow, lenders will know this immediately. You should never guess at numbers either; profit and loss statements should accurately reflect your actual income and expenses. To get your financials in order, you can buy an online accounting software or hire a professional accountant.
If you decide to go with Camino Financial, you can upload your small business documents online or submit your financial records to your business loan specialist: it’s fast, easy and completely secure. You business bank statements will be the only documentation required during the application process. Afterward, we carefully review your business profile and match you with the small business loan solution that best fits your needs. At this point, your business loan specialist will make you an offer. You just have to sign the small business loan agreement and you’re all set! You will receive your funds directly to your bank account in just a few days.
5. Approach the Right Lender
One of the many aspects of getting a loan application approved is going to the right lender. For example, if you are attempting to finance for a line of credit to pay expenses needed for hiring new staff, renting a new office or day-to-day operating expenses, you won’t go to a lender who specializes in equipment financing. If your goal is to have your future invoices factored, you won’t go to your local bank: you’ll go to a factoring company. This matters more than you might think because approaching the wrong lender will waste your time and theirs.
Regardless of why you need a loan, you can count on the friendly professionals at Camino Financial. We know that every business owner has different loan requirements and some even have minor defects on their credit reports. We make sure your loan application gets into the hands of the right lender based on your specific needs: you’ll be assigned your own small business loan specialist that will work with you and will answer any question you may have during the loan process. Our loan process is not only more personal than in a traditional bank: it also provides more ease while taking less time and requiring less paperwork. And remember our services don’t stop with just loans; we help businesses with marketing and technology tips to grow their business, and we offer advice to those with less than perfect credit to get on track and rebuild their credit. Contact us and let’s talk!