Criteria is everything is you’re aiming to get your business loan approved. Once you know what lenders are looking for, you can increase your chances of being accepted. So what are providers looking for?
Asses Your Application
Check your application first to see if you fit the bill. Some of the things you should ask first before even making the application:
- Can you afford the loan? It’s easy to borrow money, harder to repay it. Check your financials for the past few periods and see your profits, loss, balance sheets and even tax returns. Your financial history should tell you whether you can afford the loan.
- Can you offer security for your loan? You must provide a security for your loan to assure lenders that you can repay the debt. Usually, this comes in the form or asset or another person or entity.
- Can you keep up with the repayments? Lenders evaluate your chances through your plans and competition. they will check if you can survive and offer more value. Make sure you know about it firsthand.
What’s the Case for Startups?
Startups won’t have the financial history advantage when applying for loans so it’s best to give a detailed business plan instead. The plan should include profit and loss forecasting to strengthen your loan application.
If you’re an existing business, then you need to show at least 2 years’ worth of profit and loss statements. Other things you can do to strengthen your application include:
- Keep financial records updated.
- Ensure enough money to cover costs.
- Keep a good credit history with on-time debt payments.
If you’re looking for easy access to capital, then Gapcap can be your partner. We understand how difficult it is at times for small businesses to access loans so made everything easier. For more information, check out our website and talk to our team.