As a business owner, you’re an expert in what you do. But when it comes to getting the funding you need for your business, it’s normal to feel a bit uncertain. You may find yourself asking questions like “What proof do you need for a business loan?” or “Can I get a business loan with a bad credit score?”
There’s no need to worry. This simple guide will answer some of the most frequently asked questions and provide you with step-by-step instructions on how to prepare and submit your small business loan application.
How to Apply for a Small Business Loan?
1. Decide on the Type of Loan You Need
There are many different types of small business loans. The right option for you will depend on a variety of factors such as how much you need, how quickly you need it, and how strong your credit is.
Many business owners choose a term loan since this is a simple option that allows you to easily budget for your monthly payments. Others may be better suited to a loan alternative, such as a merchant cash advance. This can be a great solution for small business owners who have poor credit or no credit but have a high volume of credit card sales.
There are other types of small business loans to consider as well, such as a Small Business Administration (SBA) loan, business line of credit, equipment loan, or even a business credit card. If still aren’t sure which type of loan is right for you even after some research, consider consulting with a financial professional or asking your lender for guidance.
2. Research Small Business Lenders
Once you’ve narrowed down your options, the next step is to figure out where to get a business loan. It’s important to choose a reputable lender and carefully review the loan terms and approval requirements.
As you do your research, you may find yourself wondering, “Are online loans safe?” You can rest easy knowing that many people who need small business loans apply online. Online lenders often require less documentation and can approve loans faster than traditional lenders.
3. Gather Your Information
The information you’ll need to provide may vary, but your lender should be able to give you a basic document list. It’s helpful to gather the items on the list before you begin to complete your application. Some of the items you may need include:
- Business bank account statements
- Personal and business tax returns
- Profit and loss statements
4. Submit Your Application
The next step is to complete and submit your application. If you choose an online lender, like Zinch, this is typically a quick and easy process. Be sure to answer all of the questions thoroughly and honestly, as this will help speed up the process and avoid any problems down the line.
5. Read the Fine Print
After you’ve been approved, you’ll receive a loan agreement that explains all of the important details such as your payment amount, payment schedule, and other information. Make sure you understand and are comfortable with everything in your loan agreement before moving on to the next step. If you have questions or need clarification, don’t hesitate to ask.
6. Finalize Your Loan
Finally, you’ll sign the paperwork required to officially accept your loan. Once you’ve submitted it, the lender will process it and distribute your funds. In many cases, the loan amount will be deposited directly into your business bank account.
Frequently Asked Questions
Is a business loan easy to get?
The amount of effort required to get a business loan depends on the type of loan and the lender you choose. Traditional business loans from brick-and-mortar lenders often require more documentation than online loans or loan alternatives like a merchant cash advance. If you have good credit and a steady income, it’s typically easy to get a business loan. However, even if you have some issues, you may still be able to get approved by certain lenders.
How fast can I get an online business loan?
Some online lenders, such as Zinch, can qualify you for a loan in as little as 24 hours. With other options, such as an SBA loan, the review and approval process may take weeks or even months.
Zinch Makes Loan Applications Easy!
If you’re looking for a quick and easy way to get funding for your business, now is the perfect time to learn more about Zinch’s small business loan options. Contact us at (714) 500-6622 to learn more. You could qualify for up to $250,000 in just 24 hours.View Options
