The Easiest Tips for Getting Approved for an SBA Loan
Getting your first SBA loan can seem like a lot to take on. However, you don’t have to be an expert in business finance in order to be successful in getting your loan application approved. Financial institutions that work with developing small businesses don’t expect you to have all of the same scope of operations and resources that more well-established larger businesses do. However, there are some qualities that all SBA lenders want to see in applicants. Here are simple but important tips to keep in mind when you’re applying for a loan.
Be Sure That You’re Working With the Right Lender
Not all lenders have programs that are geared towards clients who are small businesses. You can choose any size lender that offers SBA loans, but you should ideally choose one who is experienced in serving clients in your specific industry so that the representative who you work with will have a strong understanding of your business’ needs.
Get the Support That You Need
While you don’t have to be a financial expert about every aspect of the lending process, you definitely need to have enough information to know what you’re getting into. You certainly don’t want to take on an obligation that you won’t be able to follow through on. Moreover, you need to be able to relay a clear and accurate picture of your business’ current financial situation and outlook.
Be Prepared to Share Your Personal Financial Information
In addition to your business’ finances, a lending institution will likely want to get a good sense of your personal financial history, so you should be prepared to share information about your own credit history and finances. Small businesses that are still growing rely heavily on the efforts and credits of its individual operators and guarantors, so sharing your personal financial info is an integral part of applying for SBA loans.
Present a Winning Game Plan
While your finances and credit history are a key part of a winning application, your business plan can have a huge influence on a lender’s analysis. You need to craft a plan that’s extremely thorough and conveys a compelling narrative. You should include information that includes your organizational structure, mission statement, forecasted revenue, and plans for expansion. You also need to clearly show how you will use the proceeds of a loan and how they will help you generate the revenue needed to repay it.