business loan application in some easy steps. The requirements for business loans be different depending on the lender, the following are some of the factors banks might look at while looking over your application for a small-business loan.
Credit score. When you request an business loan, the lender will review the credit score of your business and personal scores. These scores help lenders assess your ability to repay the loan. As a rule, the better your credit score, the greater the chance of getting a loan as well as a favorable interest rate.
A personal or collateral guarantee. Some lenders require you to pledge collateral–something of value, such as equipment or inventory–it can seize if you default on the loan. Many lenders will also ask for personal guarantees. That means you’ll need to cover the loan by using individual assets, such as savings, or even your home.
It’s crucial to remain active for a prolonged period of. Traditional banks typically require the business to be running for at minimum two years. An online lender generally requires only one year. Don’t get discouraged if you’re business has been operating for less than one year. Applicants who are new to the business sector may be approved by lenders online.
The annual revenue. Your total annual sales are also a relevant factor. Contact a banker about the criteria and check your financial records to see whether they meet. bkrvcjg849.