The process will vary depending where you look for a loan, but here at Lendio, we make it easy to get a loan. Start by filling out our online application and entering some information about your business. When you’re done, a personal funding manager will contact you to discuss your loan options. Then you simply choose your preferred loan and your funding manager will push through the application to the lender and finish up the final details.
It really depends on where you apply for your business loan. For example, in the last half of 2016, banks were only approving 20-25% of small business loans, where alternative lenders were approving 60-62% of similar loans. And as an online lending marketplace, we work with more than 75 lenders so there is almost always a way to find a loan that can work for you. But the only way to really know is to fill out an application and see for yourself!
The documents you’ll need to apply for a loan will vary depending on whether you apply with a bank, an online lender, or at an online lending marketplace. To fill out an application at Lendio, you’ll be required to know some basic information about your company and your personal situation. We don’t require you to send in any documents besides providing business account bank statements for the past few months.
The loan products you qualify for will likely determine the way in which, as well as how often, you’ll pay back your loans. Typically, the stronger your business and credit, the less frequently you’ll have to make loan payments and the more payment processing options you’ll have. In contrast, the lower your credit scores and business strength, the more frequent and determinate your payment options will be.
You’ll be expected to bring personal background information, your resume, a highly documented business plan, signed personal financial statements, personal credit reports, your business credit reports, personal and business tax returns for the previous three years, an entire year of personal and business bank statements, documentation of collateral, and a number of legal documents. And that’s before they start asking questions.
This really depends on your unique business. We offer many different specialized loan products to help fund your business efficiently. In some cases where a loan is going to be used for many different things we will offer several loans, each serving a different purpose. This helps you get the maximum amount of funding easily. Your funding manager will help you decide which option is best for your situation.
You’ll need to know some basic things about your finances and your company such as your approximate credit score and what industry your business will be in. You’ll also want to be able to show past experience in the field if you have any, and you may need up to two years of personal tax returns depending on the type of startup loan options available to you. Other than that, just apply and pray! Just kidding, you’ll be fine.
A commercial mortgage is another term for a commercial mortgage. These loans work by utilizing the collateral value of real estate you own in order to get funding for your business. A commercial real estate loan is most commonly used to turn your equity into needed working capital, refinance your real estate to increase cash flow, or to purchase a new property for expansion or growth.
A VA loan is a personal loan offered by Veterans’ Affairs to most members of the military, veterans, reservists, and National Guard members. While VA loans are restricted to mortgages, refinancing, rebuilding, and expanding or extending a personal home, the SBA does offer a loan service called the “Patriot Express” which is a more traditional business loan to help veterans start their small businesses.
Some government agencies do offer small business loans or grants specifically for minority-owned businesses. They’re excellent programs and we encourage anyone who may be eligible for those offers to check them out and see if they qualify. Unfortunately, As a private business, as well as an online lending marketplace, we do not have any options that we can offer exclusively to minorities.
The most commonly accepted definition is loans of a relatively small dollar amount used to help small businesses and entrepreneurs grow or sustain their businesses. The dollar amounts, according to bank definitions, range from $500-100,000. The average micro loan in the U.S. is just $13,000, but businesses in the United States only receive a very small percentage of the micro loans around the world.