Unfortunately, there are a lot of reasons why a business loan application might be denied.
But the more important question to ask is, “What can I do to improve the odds of a successful loan application?”
Lenders want to make sure of three things essentially:
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Equipment financing is the use of a loan or lease to purchase or borrow hard assets for your business.
Any tangible asset, other than property or a building, used in the operation of a business may be considered equipment.
For example, desks, computers, a pizza oven, a dental X-Ray machine, and construction equipment are all considered business equipment and can be either purchased with an equipment loan, or leased.
Because the equipment you are purchasing is considered collateral, this is a financing option that allows a small business owner to finance the purchase of equipment even if they don’t have other assets that could be used as collateral.
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Believe it or not, you can get a business loan even if you have bad credit.
With that said, if you do have bad credit, we strongly recommend investing in a credit repair program that can improve your credit as soon as possible.
It doesn’t take as long as you might think and it will save you a lot of money in interest and fees in the long run.
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Building business credit plays a crucial role in your company’s funding ability. Whether you operate as a limited liability company or corporation, your business has the ability to establish a credit file separate from you as an individual.
When you register a business (LLC, LLP or corporation) it becomes recognized as a separate legal entity with the ability to enter into contracts. It’s treated as a separate being from you as an individual.
If you want to build business credit quickly here are five simple steps:
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It’s called Invoice Financing, also called Receivables Financing or Invoice Trading.
Invoice financing provides businesses with working capital to improve immediate cash flow, pay employees and suppliers, and reinvest in operations and growth earlier than they could otherwise if they had to wait until their customers paid their invoices in full.
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Your personal credit score and business credit score are two separate but related numbers that tell lenders how creditworthy you, or your business, are.
But because credit bureaus use similar metrics to measure both scores, and because personal credit is occasionally used in lieu of business credit (for sole proprietors), there is some confusion as to how to build and maintain each form of credit separately.
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Microloans are a good alternative lending option for many business owners so they’re good to at least be familiar with and to have in your loan arsenal.
They are typically best suited for small business owners or startups that have a thin credit file or can’t secure funds through a traditional bank.
Here some pros and cons of Microloans:
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You have the end in mind, but where do you start to get the funding you need to get the business off the ground?
A good place to start is with your personal credit scores and business credit scores, which are a measure of the creditworthiness of your business.
A good credit score can put you in a much better spot than a bad credit score, so be prepared to put in the work if you want to improve your business credit score.
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Not every loan type is right for your business.
Choosing the right type of loan comes down to a lot of different factors, like what industry you’re in, what you need the funding for, etc.
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Small business owners commonly run into financial hurdles that they did not plan for (that’s business).
When this happens, a business line of credit is often the savior to just about any economic concern.
A business line of credit works similarly to a credit card. You apply for the funding and, when you are approved for a certain amount, you have access to the funds as you need them up to your credit limit.
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