Getting a business loan is a major hurdle facing small businesses, mainly due to tight lending standards by banks. But obtaining outside financing is often necessary to start or grow a business or cover day-to-day expenses, including payroll and inventory.
Although finding, applying for and getting approved for small-business loanscan be difficult, the more prepared you are, the better. Here’s how to get a business loan in five steps:
- Pinpoint why you need the money. Ask yourself how this loan will help your business.
- Find the right loan. Choose a type of business loan based on your needs.
- Find the best lender for you. Compare options based on the cost and terms of each loan.
- See if you have what it takes to qualify. Gather information including your credit score and annual revenue.
- Get your documents ready and apply. Know what documents lenders will need from you ahead of time.
https://www.nerdwallet.com/blog/small-business/how-to-get-a-small-business-loan/