How To Secure A Business Loan
Use these tips to find the funding you need.
$20,000 – $350,000
1 – 4 Years
Up to $200,000
Daily, Weekly or Semi-Monthly Payments
$5,000 – $150,000
1 – 3 Years
85% – 95% of Invoice Value
Actual offers vary based on your application information and lender.
Tips for Securing a Business Loan
The United States boasts an incredible 28 million small businesses, defined as businesses with 500 employees or less.1 They vary dramatically in many ways, but many share one similarity: financial challenges. Many businesses in need of small short-term loans choose cash advances, which are alternatives to traditional loans. Others, however, are less inclined to use cash advances and instead pursue short-term small business loans through the SBA, banks or alternative lenders.
The process of receiving short-term loans for businesses can be daunting. That’s why we’ve compiled this list of steps to apply for a short-term small business loan when you need one.
Develop a business plan
This serves as proof that customers would buy your product or service at a high enough price for your business to make a profit. Lenders are primarily looking at your cash flow, collateral and viability of your business.
Demonstrate that you can produce a good profit by creating realistic short-term, medium-term and long-term financial projections. By creating these benchmarks for short-term small business loans, you demonstrate the responsibility and financial savvy needed to succeed in obtaining a loan. Just make sure that you haven’t underestimated your financial needs and that you haven’t forgotten about seasonal highs and lows.
Prove you can compete
Include details in your business plan about how your product or service gives you a competitive edge over similar businesses.
Look for industry favorites
You have a better chance of obtaining a small business loan if you approach lending institutions who have familiarity with your industry and target market. Get in touch with your local chamber of commerce to find out which institutions are recommended for your business.
Be ready to talk
When the time comes for your loan interview, be prepared with facts to support your application claims. Have a positive, professional demeanor and know your plan inside and out. Try to sell three things: yourself, your confidence in your business plan and your creditworthiness.
It can be challenging to obtain short term small business loans, especially for business owners without much of a proven track record. If you are careful to apply these tips, however, you’ll put yourself in a better position to succeed.
What Does The Business Backer Offer?
The Business Backer is a small business owner’s best friend. We help hardworking business owners all over the country secure the business funding they need to grow their businesses. With a wealth of financing options available through our True Relationship Network™, we will help find the best funding match for your business using our years of expertise to help you get the money you need.
Want to see what funding type might be right for your business? Take our BestMatch Analysis and one of our Funding Advisors will be in touch with you to review your options!