So, you have made a big enough dent in your industry to take your small business to the next level. Well, let’s celebrate with a how-to-guide on securing a business loan, shall we?
Surprise! If you didn’t know by now that you were going to need outside financing to take your small business next level, well now you know. The truth is as your business starts to grow simple things like payroll and inventory that use to take you a few hours to complete now take days or even months alone. So, what else can you really do but choose to expand?
Yet, since you are considered a small business by most lenders, you will quickly find that it is somewhat difficult to secure a business loan initially. But, that doesn’t mean it’s impossible. In fact, the best way to secure a business loan for your small business is to get in the know and start applying. By “get in the know” we mean understanding why you need the money, narrowing down your loan options or types, finding the lender that gets you and seeing if you qualify. After all of this is accomplished, really all that’s left is to get the necessary documents together and apply.
But, wait this sounds fairly cut and dry. It may seem so cut and dry, in fact, that you are wondering why people say it is difficult for small business owners to secure additional financing? Well, the obvious answer is, it’s more about qualifying or rather meeting your lender’s requirements than it is about getting your paperwork together and coming up with a clear plan. But, the good news is by getting in the know i.e. completing the above-mentioned steps you will actually make it much easier for yourself and your business when it comes time to meet those pesky lender requirements.
When meeting with potential lenders or your future lender it is important to know exactly why you need this loan, so again make sure you know as well and preferably beforehand. Next, you need to decide which loan is right for you. This step is actually not as hard as it seems because if you know why you need the loan then you can find the right loan. For instance, if you are looking for some financial assistance in managing the day-to-day expenses more than likely you want a short-term cash flow loan or a line of credit. If on the other hand, you want an additional financing to grow your business then you should be looking at term loans. Based on these two steps, your next move is, of course, finding the right lender (note: if you have bad credit you might want steer away from traditional lenders).
So how does all of this help you exceed your lender’s expectations? Well, it makes it much easier to figure out key factors that affect your approval such as your credit score and it helps you to see if you are truly in a position to secure a loan( been in business more than 2 years, meet the minimum annual revenue requirement and have the ability to make payments).
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.