Unfortunately, small business financing is not easy for most people to obtain, especially if you don’t already have good credit. There is usually a lot of legwork required to obtain a business loan. For some new businesses, the owners often have to resort to obtaining a personal line of credit and using it to find the business. Easy-to-get small business loans really do exist, as long as you set everything up correctly and look in the right place.
Here are some tips to increase your chances of finding and getting a small business loan:
1. Clean up your personal credit report. This is something lenders will want to see. If you have bad credit, take the time to fix it. You may even want to use credit repair services.
2. Create the best business plan possible. Consider this your “sales pitch” to funders. If you want the most money possible from a lender, it can’t be reserved. You must specify exactly why you need the money, how much you need, and what it will be used for.
3. Keep everything as organized as possible. A wide range of documents may be required, including tax returns, annual income, and bank statements. Know what documents a potential lender will require from you ahead of time.
More tips for easy-to-get small business loans
4. Determine the best type of lender. There are many types of organizations that offer easy-to-obtain small business loans, including banks, online lenders, nonprofit microlenders, “angel investors,” credit card companies, and more. Use a bank when you already have good credit and can provide collateral. Use online lenders if you have no collateral and need financing as quickly as possible. A microlender may be ideal when you have a business that is so small that it does not qualify for traditional financing.
5. How long have you been in business? If your company is less than a year old, you will have a hard time. If you’re running a startup, consider solutions like personal loans, angel investors, or even online crowdfunding if you can come up with an innovative marketing message.
6. Find out how much the payments will be and make sure you will be able to afford them. Different lenders have different terms and different interest rates. You may need to pay only once a month or twice a month.
If you need a quick business loan, US Business Funding is a great place to start your search. This site has been featured in publications like Forbes, Business Insider, CNN Money, and other similar organizations. US Business Funding reviews are mostly positive.