Small business owners often hit a slump because of funding issues. It’s hard to get anything off the ground without the capital to support it. So what should you do? Find the right loan.
A business loan is the answer to an entrepreneur’s funding needs but it can be confusing to know which one suits your needs best. Often, owners are plagued with concerns like:
- Where should I go?
- How much should I ask?
- Will I succeed?
The number of lenders and loan types could bog you down initially but it doesn’t have to be confusing. We have prepared a basic guide on what you should consider when looking and applying for a business loan.
What Lenders Look For
You need to map out your objectives to know how much money you need and in what terms. Consider the following questions:
- What do you qualify for?
- What are your priorities?
Regardless of the type of lender, they usually consider these top factors:
- Age of your business
- Your personal FICO score
- Size of proposed loan
- How you plan to use the cash
Lenders can evaluate their potential cash back through these factors. If your business is still young, you might have to provide additional details on how you plan to generate revenue and grow. A clear and detailed plan should also score well. Do take note that two years is a magic number for many businesses. If you reached this milestone already then you can qualify for a broader set of loan options.
At Gapcap, we help small businesses get access to funding. From small business loans to other management support, we have the right professionals to guide you.