What Does It Take To Get A Business Loan?
With so many businesses springing up on the scene, questions start to arise of how easy is it to actually start one yourself? How did they come up with the money? Will it be easy to get a business loan if you really needed it? These gray areas seem to never be quite clear from the outside, however, if you are looking to start a business of your own and worried about financing…
Here’s what it really takes to get a business loan:
Know Why You Really Need It
Knowing exactly why your business could use financing is key to deciding what type of loan you need, which lender to go with and figuring out how much it’s going to cost you. Do the math and add up your expenses. This will help you narrow down lenders: Most have minimum and maximum borrowing amounts. It’s generally not a good idea to borrow more than your business needs because you’ll end up paying more in interest.
Have Good Personal/Business Credit
Lenders typically examine your personal credit report when you apply. Lenders often require a personal score of at least 650 from successful loan applicants. If you’re already in business, prepare to submit a