There’s no denying that securing funding for your business can be a challenging process that requires a significant amount of patience and endurance to get to the finish line. But there are a few ways to expedite the process while also receiving the best rates and terms available. Here’s how you can get a small business loan while avoiding as much stress as possible!
Research the different types of small business loans available
Understanding the different types of small business loans that are available is critical to finding the best rates and terms you can secure for your business. Every loan and financing option is different. For example, getting a small business loan through the SBA can be lower cost and more accessible, but sometimes they can require more time to process your application and grant your financing. Other loans, like a business term loan, can be much faster to process and approve funding – but you might need to meet more stringent business requirements in order to get approved.
Just as there are many different types of small business loans, the qualifications needed for approval will vary depending on the type of loan. Most loans will require you to provide tax returns, profit and loss statements, credit history, and various other documents that will determine your loan eligibility. Some types of loans may also require collateral to back your loan, such as real estate, equipment, or inventory that will help protect the lender in the case of defaulting on your loan. To get the best rates and terms, you’ll want to show that your business is on solid footing with a solid history of revenue and profit.
Not only are there a multitude of financing options on the market, but the terms and cost of each type can vary widely from lender to lender. This is why it’s vital to compare your options before committing to a single lender. By using a proven broker like Llama Loan, you can instantly get access to the best rates and terms available by leveraging our relationships with the top lenders. Some types of loans will have capped interest rates, while others can vary depending on your credit and business history. Payment terms can also vary depending on the loan and lender. Be sure to compare all of the terms and conditions of the loan before submitting your application or committing to a form of financing.
Once you’ve compared different loans and lenders, it’s time to submit your application. Be sure to examine exactly how much financing you’ll need, as well as your ability to pay back the loan to ensure your business is set up for success. When completing your application, fill it out correctly and double check it for accuracy to limit delays in the approval process. This can help to save valuable time in the future.
Gather all the required documentation, such as financial statements and tax returns
Once your application is submitted, you’ll need to provide all of the proper documentation in order to proceed with your loan. Some documents may be required when submitting your application while others may be required after your initial eligibility check. To speed up the process, aim to have all of the documentation ready when you apply for a loan – this will cut down on the back and forth during the approval process.
Once you’ve submitted your documents, it’s time to wait. The amount of time required to process and approve your loan will vary depending on the type of loan and your lender. Some loans can have approval times in less than 72 hours, while others may take two to three weeks for approval. During the approval process, more information may be requested from your lender – by responding promptly, you can limit additional delays to get the funding you need for your business.