Many small business run into problems when accessing capital. Some just don’t have the business history, while others lack the credit record. If you’re anxious about getting a small business loan without credit then don’t fret. There are still ways around it.
Nurture a Local Bank Relationship
Building a connection with large national banks when you’re a small business is like shooting for the stars. Start small. Develop a relationship first with a local bank. Small banks have fewer restrictions so they are more willing to work with small businesses. You can treat this as your stepping point as you build your reputation.
Negotiate Your Loan
Talk to your bank about getting the loan. Try to apply for a loan supposted by the government. This will reduce the risks and assure you that the government can help you out should you default on te loan. Present your cash flow so the lender sees that you have enough for repayment. If possible, try to highlight your business value as well.
Secure a Collateral
One thing that appeases most lenders is collateral. If you can provide a collateral then you can secure their trust. Your chances of getting approved increases. You can use an equipment, your property or other assets for collateral.
Before applying for any loan, make sure you know where you will use it and how it will benefit the business. It is easier to back your application if you can show the lender that you will put the money into good use.
At Gapcap, we offer easy loan options with minimal requirements. Approval is also very easy. Check out our website for more information including what you can do.