Applying for a commercial business loan can be tricky and frustrating. With the plethora of loan providers available, it’s always best to be smart about your next move into loans. The following tips in today’s video provide you with an easy-to-follow guide to help simplify applying for your first small business loan.
1. Flesh Out a Detailed Cash Flow Plan
One of the first things lenders look for is a cash flow that shows how the company plans to operate. Having a detailed cash flow plan worked out before will save time and effort, and a reasonable strategy can go a long way. Show how you intend to keep your profit margins and a contingency plan for unexpected events.
2. Know the Type of Commercial Loan You Need
There are many types of loans targeted at different businesses, all with their criteria. These include business lines of credit, equipment financing, term loans, SBA loans, and inventory financing, to name a few. These vary in duration, amount, and specific terms. Self-assess your company and decide why you need the loan and how much you can manage.
3. Have Your Financial Statements in Order
Getting that commercial loan will require having all your finances in order and your business documentation. Typically, loan companies will look for legitimacy and long-term company success. Some important documents include financial statements, insurance, business plans, and tax returns.
4. Determine Security
Most lenders look for a safe bet to ensure the money they’re loaning will come back to them. A borrower can guarantee the loan’s security is what appeals to lenders. Showing a solid promise in paying back will have lenders lining up.
Understanding your business and the types of loans available is the key to getting the right loan. If you need help finding the perfect loan option, First Union Lending can help!
Choose First Union Lending
First Union Lending offers numerous financing programs designed with small businesses in mind. Our business loans are fast and flexible, with financing options ranging from $5,000 to $2 million. Contact us today!