So you’re in the market for a business loan, perhaps for new equipment or marketing or an ornate marble fountain with a statue of you on top. You’ve got big dreams, friend.
Now you have to go about actually getting a loan to complete that project that has been in the works for many moons, and that can be easier said than done. If you’re looking at banks, you’ll be faced with regulatory red tape and more slowdown than a man jogging in molasses. If you have poor credit, you’ll definitely hit roadblocks along the way. And so on.
That doesn’t mean you should throw in the towel before you even start. There are three effective ways to get through the business loan application process swiftly and with a minimum of trouble. I’ll list them below.
The Top 3 Ways
- Have good credit. Failing that, have improving credit. Nobody expects you to have pristine scores all throughout your business career, but showing you’re taking steps in the right direction can go a long way with lenders, who are as easily spooked as a herd of gazelles. Being able to be open and honest with a lender about your credit situation helps.
- Find a lender you trust and roll with them. Once you’ve done a deal with your preferred lender, things have gone well and you’ve made all your payments, the next time you’ll find an even shorter process than usual, entirely thanks to the comfort level that runs both ways.
- Don’t wait until you’re desperate. Having worked with a finance company for a little while now, I can tell you that businesses in need of financing right now have a whiff of helplessness around them, and if that’s paired with poor credit you’re in trouble. Go when you have the leverage and the need is urgent but not dire.
If you can set up a good relationship with a lender, work on that credit and time your request correctly, you’ll lessen the problems you’ll face. Given a lending environment that’s still mixed (though we’re only growing at the moment, as we noted recently), it’s a good idea to have a good hand.
Please note that lenders like Direct Capital can tailor financing to your specific business situation, so it is always worth a call to your preferred financing firm to be sure, even if you can’t or haven’t done any of the three suggestions above. As always, give us a call if you have immediate needs, because the turnaround time can be remarkably quick. I swear.
Photo credit to iStock