Now that the approval percentage for securing small business merchant loans has risen to twenty-eight point three percent, business owners can now breathe a sigh of relief.
The business economy is advancing, and more people are getting interested in starting their businesses. This has created a better environment for companies to take loans to help them scale their businesses.
The best of all is that the interest rates have remained low, which means that businesses that apply for business loans won’t repay their loans with substantial interest rates. In a nutshell, if you have had good times in the past two years or so, lenders will be more than willing to offer your business loans.
In this post, I’m going to take you through a few things you need to consider before you apply for a business loan.
1. Create and Update Your Business Plan
If you don’t have a business plan yet, you need to create one. A well-crafted and professional business plan can make a difference in your business. And the best of all is that a business plan can increase your chances of securing a small business loan.
2. Put Together Your Financial Statements
If you intend to apply for a small business loan, the chances are that lending institutions will be looking forward to checking your financial statements.
Additionally, lenders will be much interested in seeing your business’ tax returns – did you file them or not? Also, lenders will check to see if you have tax compliance documents.
Expert tip – if you did better last year as compare to other years, it is essential to include that financial statement in your loan application.
3. Shop Around and Get the best Deal
Because the interest rates are low across the markets, different lenders are competing for deals, and that means that you could get a better deal by first shopping around.
And unlike in the past where we had to go individually to compare different banks, today you can use the internet as a comparison tool from anywhere you are.
Bottom Line
This year, interest rates have significantly dropped for small business loans, and because of this, different lenders are more than willing to support your business. Still, one thing you should not forget is to shop before applying for the SBLs.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loans solutions.
He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing
business funding for hard working business owners across the country.