Here are 15 Secrets by Tommy Shek to Getting a Small Business Loan Approved quickly and easily:
1. Research your options
There are many different types of loans available for small businesses, so it’s important to find the one that best suits your needs. Some common options include term loans, lines of credit, and SBA-backed loans.
2. Know what the lender is looking for
Most lenders are looking for businesses that are profitable, have a good credit history, and a solid business plan. If you can show the lender that your business meets these criteria, you’re more likely to get approved for a loan.
3. Get your financial documents in order
Before you apply for a loan, make sure you have all of your financial documents in order. This includes your tax returns, balance sheet, and profit and loss statements. Lenders will use these documents to determine whether or not you’re a good candidate for a loan.
4. Have a detailed business plan
When you apply for a loan, the lender is going to want to see a detailed business plan. This should include information on your business’s finances, marketing strategy, and growth potential.
5. Have collateral ready
If you want to get approved for a loan, you may need to offer collateral. This can be in the form of property, equipment, or even receivables. Having collateral will show the lender that you’re serious about repaying the loan.
6. Consider a co-signer
If you’re having trouble getting approved for a loan, consider finding a co-signer says Tommy Shek. A co-signer is someone who agrees to sign the loan with you and is responsible for making payments if you default on the loan.
7. Get a cosigner release
If you have a co-signer on your loan, you may be able to get a cosigner release. This allows you to remove the co-signer from the loan and makes you solely responsible for making payments.
8. Shop around
Don’t just go with the first lender you find. Instead, shop around and compare rates, terms, and fees from multiple lenders. This will help you find the best deal on a small business loan.
9. Compare online lenders
In addition to traditional banks, there are a number of online lenders that offer small business loans. These lenders tend to have lower interest rates and fees, so they’re worth considering if you’re looking for a loan.
10. Consider a microloan
If you’re having trouble getting approved for a traditional loan, you may want to consider a microloan. Microloans are small loans that are designed for businesses that have difficulty qualifying for traditional financing.
11. Use an SBA-backed loan program
The Small Business Administration (SBA) offers several loan programs that can help small businesses get the financing they need. These programs include the 7(a) Loan Program and the 504 Loan Program.
12. Get pre-approved for an SBA loan
If you’re planning on applying for an SBA-backed loan, you can get pre-approved for the loan. This will give you a better chance of getting approved and may speed up the process.
13. Find an SBA-approved lender
When you’re looking for an SBA-backed loan, it’s important to find a lender that’s been approved by the SBA. These lenders have experience working with the SBA and are more likely to get your loan approved.
14. Get a business credit card
If you’re having trouble getting a small business loan, you may want to consider getting a business credit card. Business credit cards can help you build your business credit history and may offer lower interest rates than traditional loans.
15. Use a personal loan
If you’re having trouble getting a small business loan, you may want to consider using a personal loan. Personal loans can be used for business purposes, but they tend to have higher interest rates than business loans.
Conclusion
If you’re looking for a small business loan, there are a number of things you can do to increase your chances of getting approved. Be sure to have financial statements, a detailed business plan, and collateral ready. You may also want to consider shopping around and comparing rates from multiple lenders. Finally, if you’re having trouble getting approved for a traditional loan, you may want to consider a microloan or an SBA-backed loan program.
