So you need a funding to get your business to the next level? You have probably tried to apply for a small business loan from a bank and they denied your request. Or you are aware that banks rarely approve small business funding requests and decided not to waste your time that’s why “hello online business loan”. To get approved you should be really prepared. There are certain questions to ask before applying for a business loan.So you need a funding to get your business to the next level? You have probably tried to apply for a small business loan from a bank and they denied your request. Or you are aware that banks rarely approve small business funding requests and decided not to waste your time that’s why “hello online business loan”. To get approved you should be really prepared. There are certain questions to ask before applying for a business loan.

1. Will you qualify?

Before applying for a commercial loan, find out about minimum requirements. Local banks require good, if not the perfect business credit score, a bunch of years in business, collateral, and a lot of additional papers. Online lenders may have same requirements but not so strict. But anyway check and bring in order your:

  • A business plan
  • Business financials and projections (balance sheets, income statements and cash flow statements)
  • Personal financial statements
  • Personal and business tax returns
  • Personal and business credit reports
  • Legal documents (i.e. articles of incorporation, partnership agreement, licenses, leases, franchise agreements)
  • A description of why you need the loan and specifically how you’ll use the funds

2. How much can you actually borrow?

The fact that you need $50,000, does not mean you can obtain the full amount. Most traditional banking institutions approve on the basis of a collateral against the assets. An alternative lender might lend up to 75% of the value of a new piece of equipment. That’s a $37,500 borrowing capacity.

3. How fast can you repay a loan?

Paying off a small business loan early should be rewarded. Look for a lender who has no penalties for early repayments. Unified Capital understands the business needs and you can pay your loan off early at any time.

4. Will the loan help your business grow?

If you are obtaining $50,000-loan to get out of a difficult situation or pay for operating expenses, you’re not using that loan to expand and you will find yourself in the same situation few months from now. Every cent you borrow should be used in such way to drive your revenue forward.

5. How good is your business’ credit?

Lenders will check your business credit score. Banks require only perfect one. Some can be perfectly fine with negative business credit score. If you are startup business or have little bit more than 6 months of operation, you won’t have business score at all. In this case you can use your personal credit score.

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