The SBA loan program is a long-term loan, guaranteed by the Small Business Administration. Heads up, some of these aren’t technically loans, but accomplish the same thing. We’ve outlined the main types of loans for business owners, to help you narrow down your choice.
#Big business loan how to#
Wait a few days or weeks for the lender to approve (or deny) your application.You provide the lender with all the documents they request (in some cases, there may be back-and-forth discussion about your business and what you’d like).You speak with a bank rep and fill out a loan application.The loan application process usually works like this: If you don’t have financial statements, you can always work with an online bookkeeping service like Bench to do some catch-up bookkeeping and get the historical financial statements you’ll need. They might also ask for legal documents, bank statements, tax returns, and a list of any assets the company owns.Ĭheck the loan application requirements before you get started to make sure you have everything you need. In addition to a stellar credit score, lenders will ask for evidence to support your application-like income statements, cash flow statements and balance sheets.
SBAs (Small Business Administration loans) - 640.What’s a “good” credit score? Here’s a rough ballpark, depending on the loan type: Minimum operation time (e.g., your business must have been up and running for at least 9 months prior to the application date).A good personal credit score (business owner).But the basics qualifiers for business financing include: Just make sure you have enough money to cover your costs, make your loan payments, and in the end, make the loan worth your time.ĭifferent lenders look for different things in an applicant. Maybe as you do the monthly math, you lose money for the first 6 months, and more than make up for it in the last 6 months. Step three: Subtract your future monthly revenue from your future monthly costs. Start with your current monthly revenue, and add in a conservative estimate of how much revenue the loan will add, if any. Step two: Make an educated guess as to what your monthly revenue will be, with the help of the loan. Don’t forget to include the Annual Percentage Rate (APR) of the loan when considering the repayments. Step one: Figure out what your monthly costs will be (include everything from taxes to payroll to loan payments). Ideally, the profits the loan brings in should cover your repayments, and then some. There is no normal loan amount for small business owners.
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