Small business lenders are eager to loan prepared businesses money.
Small business lenders loan businesses money that can be used for capital within that business. They weigh a variety of factors when considering a business loan application. Being prepared before attempting to obtain business financing from small business lenders is the best way to ensure success with you application.
Having a completed and detailed business plan will help the lender understand your business more and the need that you have for financing. Registering your business to do business in your state and setting up a business checking account are also important steps that should be completed before seeking a loan. You should also look into building your business credit scores up. They will help the lender determine the creditworthiness of your business. These scores report positive payment histories, and work to build your business credit scores, much like personal credit scores work.
You can start building your business credit scores by separating all personal credit from business credit. This means that you will no longer personally guarantee business loans by using your social security number. The next step will be to work on establishing a 1-3-5. That is 1 small bank loan, 3 business credit cards, and 5 vendor lines of credit. By setting up all of these with one of the few lenders that actually report your business credit scores will be the perfect way to build up your credit history for your business. This will prove very helpful down the road for your business.
Use our free business capital search engine to find many small business lenders.