Small business loans can be very important for helping your business grow and for reaching the level of success that you desire.
Funds can be used for a variety of reasons, and if you follow the steps described below, your chances of being approved will be greater.
SBA business loans provide attractive loans for small business with low interest rates, and with the backing of the federal government. Interest rates and repayment terms are generally more favorable with these kinds of loans because of that government backing, and the loan amounts can range up to $5 million. The only drawback to SBA loans is that requirements for approval are relatively strict, which means approval rates are not as high as with some other kinds of loans.
How to get an SBA loan
First of all, you should research all those lenders who offer SBA loans, and try to find out which one of them offers the most attractive terms for your situation. You should try to anticipate how any lender will view your application, and make sure these factors are all in your favor. That means keeping a good credit history, maintaining low debt balances, possibly having investors in your company, and ideally having several years of business history to point to.
Be prepared to answer key questions
When you’re applying for an SBA loan, you should be prepared to explain exactly how much you want to borrow, and what you intend to use the funds for. Any lender will be keenly interested in your responses, so be prepared to have solid explanations for these kinds of questions.
When you do receive an offer from the lender, make sure to analyze the terms of the proposed loan, to be sure that the loan makes sense for your business. In the flush of excitement over being approved, don’t accept a loan which might cripple your business with repayment terms.
SBA loans through BizCap Commercial Finance
If your business could use an SBA loan, we’d like to talk with you. Contact us at BizCap Commercial Finance, so we can discuss the possibility of arranging an SBA loan that will provide the funding your business needs for growth and future success.