When it comes to getting a business loan in Virginia, there are a few things that you should know going into the process. The process is not nearly as complicated as many people make it out to be. Whether you’re located in Richmond, Arlington, or Williamsburg, you have access to numerous alternative and online lenders that are ready and willing to facilitate helping you get small business loans in Virginia.
If you opt to work with a Virginia-based Bank, in the traditional sense, you could be facing more of an uphill battle. Traditional banks tend to be a bit hesitant to lend to smaller businesses. Their approval benchmarks are often relatively high and unattainable. And they are usually fixated on credit scores, meaning, if yours is less than ideal, you are likely not a good candidate for the minor business loan approval in their eyes.
So how can you optimize your loan application packet for small business loans in Virginia? Below are a few tips and advice for those Virginia businesses looking to get funding for their companies.
Prepare Your Loan Application Ahead of Time
When working with an online lender, you will generally fill out an application on their website. At that point, a representative will be in touch to walk you through the rest of the process. This gives you a chance to ensure that everything is up-to-date and accurate. It makes a lot of sense to have your materials ready to go ahead of time.
Your credit report, for example. Do you know if there are any inaccuracies in that report? When was the last time you checked your business and personal credit reports? While other factors will go into whether or not you get approved for a small business loan in Virginia, an accurate and up-to-date credit report will factor in.
You could also start paying down your debts. It often makes sense to start with higher interest debts first. The less money you owe due to past liabilities, the more attractive your loan application packet is to lenders.
Your tax returns are another component that you want to ensure are ready to go. Are you up to date in terms of filing your returns? If not, or if there is some question concerning your tax returns, you may want to talk to a tax specialist to help you at this point. A lender is likely to ask to see both your business and personal returns. So do keep this in mind.
Are there any relevant Virginia business licenses or permits that you need? If, whether at the state level or federal level, your particular business is required to have permits or licenses, be sure to have these ready to show your lender.
Getting Small Business Loans Virginia Can be a Fast Process
People hear horror stories of how banks make companies wait for weeks or even months for funding. And this is after they have been approved. This, however, is not the case when you work with an alternative or online lender for your Virginia business.
You will often get a decision the same day that you apply. And as far as actually getting the money, many small businesses who go with an alternative or online lenders receive cash in their accounts within two business days. This is why it makes so much sense to explore this route versus dealing with the mountains of paperwork, endless wait times, and numerous hoops that you have to jump through when working with a conventional bank.
Small Business Statistics: Virginia
Some things you might not know about small businesses in Virginia…
- Just over 99% of all businesses in the state are small businesses.
- Small businesses accounted for just under 40,000 jobs created in 2019 in Virginia.
- Sole proprietors in the state do not have to have a business license unless their industry requires it.
- Virginia has been voted as the number one state for black-owned businesses.
First Union Lending is Here to Help
We offer a wide variety of loan programs for Virginia businesses. We want to see you thrive and ultimately grow. This is why we do what we do. With short-term loans, equipment financing, and SBA loans among other options, we have a lending solution for you. Call today and let’s get started together.