What Lenders are Looking for

Whether you’ve been in business a long time, or are just getting started, you might find yourself in need of a business loan. Do you have what it takes to qualify?

Lenders look at a variety of variables.

Credit score

Most lenders will look at your credit score, because it’s a fairly good indicator of how likely you are to repay the loan. Established businesses will have a business credit score as well. You can improve your score by always paying your bills on time. You should also check your score for any inaccuracies so you can get them fixed.

Business plan

How do you plan to use the loan? Know your strategy and have a clear explanation of what the loan would do for your business.

If you’re just getting started, your plan should include reasonable estimates as to potential costs and profits for the first few years of your proposed business.

Collateral

Many loans require either collateral or a personal guarantee to cover the loan. Be sure you understand this portion of the loan, because failure to pay could mean loss of your business assets—and if that doesn’t cover the cost of the loan, your personal assets as well.

Tips for New Businesses

Sometimes it can be difficult for new businesses to secure a loan, so you might want to research other funding options. The US Small Business Administration has a variety of resources and can even help new businesses secure funding through their local partners.

Stop in to talk to a loan officer today, and we can help put you on the right track to secure your business loan.