Small businesses need access to capital to jump start an idea and continue operating. However, most traditional loan options do not work well for startups or those without a comprehensive business or credit history. While this makes it hard on small businesses to apply for traditional loans, it’s not the end of the road yet. Here are some FAQS you may need to know to get the funding you need.
Which lender do I choose?
Remember that different types of businesses require different types of funding. Organisations operate differently so they have varying needs. Evaluate your situation and needs first before looking for a lender. However, if you need the funds immediately then you may have to resort to alternative lending products or cash advance.
What do I need during the loan application process?
Lenders will ask you standard questions and documents before granting you anything. Some things that might crop up and you need to prepare include:
- Business history and financial statements
- Profit and loss statement
- Project financials
- Income tax returns
- Business lease
- Business license
- Business plan
Especially for businesses without as much history and credit score, business plans play a crucial role. You need to show the value of your business in the plan. Make it as detailed as possible.
Evaluate your chances with a lender. There should be previous clients and existing information on how they process loans. If you think you are not cut out to be eligible then find alternative sources. Lenders like Gapcap offers funding specifically for small businesses. Reach out to our team to know more about what we can do for you. Check out our website as well for more information.