If you are trying to find a way to finance your business, then you may want to consider getting a SBA loan. Many entrepreneurs have been able to get the funds that they need to start their business thanks to SBA loans. A lending institution may also be able to help you with setting up a merchant account and credit card processing.
However, there are several things that you will need to do ensure that you get approved for a SBA loan. Below is the step by step process of getting approved for a SBA loan:
Check Your Credit
Your credit history is one of the things that a company will take into consideration when they are deciding whether or not to approve you for a SBA loan. That is why you should check your credit before you apply for a loan. Verify that all of the information on your credit report is correct. It is estimated that a quarter of people have errors on their credit report. One mistake can cause your credit score to drop drastically, so you should make sure that you report errors immediately.
If your credit score is not as high as it should be, then you should try to improve it before applying for a SBA loan. Paying bills on time and reducing debt are two of the key things that you will need to do to improve your credit.
Put Together A Business Plan
Companies want to know that you are serious about your business, so you will need to put together a business plan. Your business plan should include your short and long-term goals. The plan should also include the amount of money that you need to start your business and how it will be used.
Research Different Banks
After you have checked your credit and put together a business plan, you will need to researcher different banks. You should contact the business development center in order to find lending instituons in your area.
Get Together The Necessary Paperwork
The documents needed to get approved for a loan can vary. However, most institutions require you to submit your last two tax returns, a copy of your business license and the last three bank statements. You should check with the lending institution in order to determine whether you need additional information.