Getting Approved for a New Business Loan Application
Thinking of getting a business loan but clueless about the process? You’re certainly not alone. There’s tons of paperwork and computations involved. And then you need to wait for the bank or lender’s decision. Luckily, the entire loan application processing system just got progressive. Now there are alternatives allowing you to break through the conventional barriers. But this is the general picture:
Dealing with Banks
First, take note that the bank would actually want you to get a loan. They actually want you to success in your application. After all, one of their major revenue sources is the interest you’ll pay. But of course, that’s also the first thing they need to be clear on – that you can actually pay. Presenting a business case that is convincing enough for them to approve your application, is your main job when it comes to getting a business loan.
As you probably know, applying for new business loans comes with a number of requirements, such as:
> income statements and balance sheets over the past 24 months;
> recent financial statements;
> a business plan that shows the path your business is taking; and
> tax returns and bank account records to back your income statements.
Modern Accounting Software
If you use modern accounting software, you don’t have to pull up any of the mentioned documents. All information crucial to applications for business startup loans, such as growth trends, income and expense records, and forecasts, will be provided by the software. And if you set up your software with bank feeds (allows your income and expense data to flow automatically from your business account/s), the loan approving officer will trust the information even more.
Presenting a Good Business Story
As we mentioned earlier, those who want their applications for small business startup loans approved, should be able to convince the bank that their business is a good bet. To convince them, you have to be aware of how bank people think. How do they assess risk, for instance? What makes arguments strong or weak for them? Knowing the answers to these questions allows you to tell your business story in ways that increase your chances of getting the loan. Consulting an accountant for help is a good idea.
Fast Small Business Startup Loans Loans
Lastly, there’s a welcome new type of lender these days that goes over your application online and provides access to capital in an instant. The main idea is, these lenders are more into what’s in store for your business, and less into what happened to it in the past. For example, they don’t have to check your credit score. Instead, they will use some analytical tools and start studying your business, and whether or not it will likely succeed.