A loan can often serve as the lifeblood of a small business. Even so, the process of applying for a small business loan can be stressful and intimidating for many business owners — especially if you start by turning to a bank.
For many small business owners, the process of applying for a loan from a traditional lender often feels confusing. But banks aren’t the only places to look when you’re trying to find funding for your company. Here are a few tips to keep in mind as you look for the right lending partner for your situation:
- Be aware that regulatory requirements may have an influence on the various types of loans that are available. Your personal credit standing can also impact your loan options, and the type of industry in which you are involved may also limit your loan options from various lenders. Traditional lenders like banks are frequently less interested in serving clients who don’t meet increasingly rigorous standards. New lending options like CapFusion have the flexibility to work with many businesses that banks won’t approve.
- You must have a good sense of your funding needs and the best approach for repayment. Keep in mind that not all business loans are the same. Ask plenty of questions upfront so you can determine whether a loan is right for you while also helping you avoid confusion later on. Take the time to develop a plan in advance so you can also determine how much money you need to borrow and the timeframe during which you can afford to repay the loan. The more prepared you are when approaching a lender, the more likely you are to be approved for a loan.
- Anticipate obstacles to obtaining a loan and respond to them proactively. For instance, it is a good idea to review your credit history so you are aware of any potential problems that could impact your ability to be approved for a loan. At CapFusion, one of just three requirements for approving a loan is a personal credit score above 500.
Obtaining a small business loan is an excellent way to fund your small business and growth projects. By understanding what is involved and how to research the best options for your funding needs, you will be better prepared to find the loan that is just right for your business. If you’ve got questions about different loan options you’ve seen, or would like to know more about the specifics of CapFusion’s loan products, contact us today.