How Do I Get A Business Loan?
There are so many different business loan options today. It easily can become overwhelming. You may not know which loan program or loan source to apply with. Conventional banks will only approve you if you have a well-established, profitable business.
KAB Credit Services Is Here to Help!
Some alternative lenders will lend to you if you have a certain amount of revenue, while others only care about your personal credit quality. Some lenders will lend you money based on your collateral, and others insist you have excellent business credit to get approved.
We will show you how to get a business loan. With so many business loan options available today, do you know how to get the most amount of money at the best terms? Our team and finance suite platform pull together all legitimate business lending programs into one place. We work with hundreds of different lenders that offer unique loan programs that work for all different types of borrowers.
As a small business owner, in addition to your business credit profile, your personal credit score will likely always be a part of any creditworthiness decision. That’s because lenders are trying to determine whether you will make your daily, weekly, or monthly payments now, based upon what you’ve done in the past. Before you apply for small business financing, it’s critical that you understand your credit profile.
Fortunately, there are several places to see what the credit bureaus are reporting. All the major credit bureaus offer you the ability to see your credit scores. Personal bureaus like Experian, TransUnion, and Equifax all make it possible to monitor your score, either for free or for a small fee. The major business credit reporting bureaus, Dun&Bradstreet, Experian, and Equifax offer the same service. With a Nav account, you can monitor both your business and personal credit in one place for FREE.
Credit Profile Matters!
Your credit profile will matter—and many lenders will look at your personal credit score as a go-no-go metric before they decide to proceed with your loan application. Most traditional lenders, like banks and credit unions, want to see personal credit scores in the 700s, though they will sometimes go as low as 680. The threshold for SBA loans can vary by lender, but 640-680 is typical.
(Keep in mind financial institutions may require a personal credit check for each owner with 20% or greater ownership.) Many online lenders will work with borrowers that have personal credit scores of around 600, but there are some that will work with you if you have a lower score. Merchant Cash Advance ( or cash advance) providers, as well as other alternative financing options, will sometimes work with a borrower who has a score as low as 500. In other words, the better your personal credit, the more options you may have looking for a small business loan.
Lenders want to confirm that you have the ability to make periodic payments. Your cash flow is a good indication of whether or not your business has the financial ability to make payments on a small business loan. Lenders will look at past sales, expenses, and future reporting, too.
Do not be surprised if they want to see things like unpaid invoices or an explainer of what your money situation will look like two years from now. Many business lenders now will also want to review at least three months’ worth of your bank statements before they will approve a term loan, a line of credit, or even a business credit card.
Decide What Type Of Loan Or Financing You Need.
Although you don’t necessarily need to be a small business financing expert, with so many options available, it’s important to become an expert at choosing the type of financing that will best meet your business needs and will accommodate your business’ credit situation. The options include:
Small Business Administration (SBA) Loan
SBA loans are available in amounts from $50,000 – $5 million, you’ll get lower rates and favorable repayment terms. The loan process can take weeks or months, depending on the type of SBA loan you are trying to obtain. Only SBA Disaster Loans are made by the SBA. All others are made by participating lenders.
Traditional Bank Loan
Get a term loan or business line of credit from a bank you already do business with (or a new one) and pay some of the lowest rats of all the options—if you meet the often rigid criteria. Loan amounts vary, and repayment terms range from one to twenty years. Get an answer in less than four months with approved personal or business credit.
Non-Bank Online Loan
Because of the quick response to a loan application and the speed with which they can make funds available, online lenders are the first choice for many small businesses today. If you’re willing to pay up a higher APR and pay your debt in less than five years, you could possibly get a loan for between $25,000 – $500,000. Credit may still count, but revenues are often more important. Many lenders can approve your loan the same day and have funds available in your account within a day or two.
Business Loan Programs
By working with all legitimate loan programs and an arsenal of lenders, we can get you the most amount of business financing at the best terms. We often help clients secure multiple types of loans and credit lines through different sources to maximize approvals.
Plus, our team even negotiates lender rates and terms for you to ensure you get the best terms available. And, we use the volume of loans we close as leverage to get you even better terms. Your finance team works hand-in-hand with you, and directly with lenders to get your loan approved and closed quickly.
You can get funding in as little as 72 hours, and get rates even lower than 5% on some funding. And, you get an entire finance team of loan processors and Finance Officers who work together towards one common goal, getting you the most money at the best terms.