Small Business Loans: What Your Lender Wants to See
Whether you are seeking funding to launch your dream business, or if you need extra capital to grow existing operations, applying for small business loans can be a stressful process. As traditional lending channels raise there requirements, making it more challenging for new and small business owners to get the financing they need, many entrepreneurs feel lost as to what exactly lenders want from them. The experts at Growth Lending Group have put together a concrete list of what your lender wants to see, and how to improve your chances of approval when applying for small business loans.
Lenders Want to See a Clear and Detailed Plan
Having an idea of your goals or the direction your business will take with added funding is not enough for lenders. You lender wants to see a detailed business plan that shows projections, direct competition, budgets, and forecasts. If you can show that you went through the work to understand your own business and its place in the current marketplace, lenders will be more likely to approve small business loans.
As with any type of loan, credit ratings play a good part in not only the approval process, but how much your payments and interest rates will be. The better your business credit ratings, the better your chances are for approval. For new business without an established credit history, lenders may look at personal credit records to approve small business loans.
How much is your business spending compared to revenue? Regarding small business loans, lenders like to see a healthy financial history to reduce their perceived risk. Lenders want to see that a business is generating the revenue necessary to cover the debt that accompanies a small business loan.
Talk to the Experts
Not all lenders are the same. Traditional lending channels have high requirements and offer few financing options outside of debt-based loans. New and small businesses are not always in a position to qualify for small business loans or to take on additional debt. At Growth Lending Group, we provide a wide range of accessible funding options for new and small business owners. To learn more about our program for small business loans, or to explore our other financing programs, contact the experts at Growth Lending Group today.