There are numerous reasons why you may need financing. Starting a new venture is the more popular reasons. Other reasons to get a business loan include: updating equipment, renting a new facility, hiring staff and/or obtaining a new building. All these factors can have a big impact on your company’s growth and viability. As result, access to capital is essential.
How Do Business Loans Work?
Most commercial loans are processed with certain criteria in mind, which can vary lender to lender. In most cases however, the determining factors for processing the loan are: financial responsibility, business acumen, accountability and trust.
What Basic Criteria are Involved in Getting a Small Business Loan?
Financial responsibility is the biggest factor in getting funded. Banks and other financial institutions need to know that you will pay back the loan. Investors need to understand that your business venture is solid enough to withstand setbacks. You need certain lending requirements such as company projections and revenue streams. Usually, traditional lenders require some sort of collateral. The collateral can vary according to a set criteria usually established by the financial institution or lender. Non-traditional lenders often also require collateral in some cases, but are more willing to work with you to get you the funding you need (if your company has a track record of success).
Is It Hard to Get a Business Loan?
No, it isn’t hard if you follow the correct requirements. However you can’t just say, “I need a small business loan” and expect to obtain one without doing your homework. You will need to research what’s out there (ie: which lenders have the rates and terms that best fit your company objectives, as well as what criteria they have). The SBA is a good bet towards starting your research and finding SBA guaranteed lending solutions. Regardless of your needs, the Halo Capital Group helps you compare rates of the most reputable lenders in the industry.
Can I Get a Small Business Loan If I Don’t Have Any Personal Collateral?
Yes, there are ways to acquire commercial financing without personal collateral. If you’re business generates consistent cash flow and has been in business for at least a year, the chances of your company getting approved without collateral is much higher.
Where Can I Obtain A Commercial Loan?
Traditionally, your local bank is the best place to get a business loan. Other financial institutions such as the old S & L organizations can be good places to financed. In addition, credit unions often provide communities that need a financing with incentives and other bonuses for repeat business. However, times have changed since the economic crash in 2008. Now, there are also quite a number of online & alternative organizations that can lend money. If you’re still not sure where to get a small business loan, financial advisers like Halo Capital Group can help as well.
How Easy Is It to Get Small Business Funding?
It can be as easy as filling out an online application. Some applications are processed within 24 hours of receipt. The more complex applications can take longer to approve. Halo Capital Group wants to make the process as easy as possible for you so we’ve streamlined the process.
I Need a Small Business Loan NOW! What Do I Do?
Emergencies happen. Getting small business loans can be really tough if you don’t have the resources and information you need. Halo Capital Group can help you determine which lending solution is right for you with a very quick approval time.
What Steps Do I Need to Take To Get Approved By Traditional Lenders?
With traditional lenders, getting approved for a business loan can be hard work nowadays. In many cases, financial institutions such as banks need applications that have information on how the money will be spent. Your plan should answer the question: “Why do you need the loan?” If you can’t understand where your company is going, then you may have a very difficult time getting business loans. You should then follow these five steps to getting funded:
1) Make sure you have all the necessary documentation. This includes accurate records of profit and loss, growth projections and revenue projections.
2) Have a good strategic plan for implementing project(s).
3) Be prepared for rejection if you are deterred from getting approved.
4) Make a good case for getting funding for your business by showing potential lenders how money will be spent.
5) Follow all instructions for getting funding and utilize all online and offline resources to follow up.
Can I Get a Small Business Loan If I’m Just Starting Out?
Yes. Halo Capital Group will work with you to help you get approved for a small business loan if your business is relatively new. Our team of experts can walk you through the process from conception to start up. The Small Business Administration (SBA) also has some great resources available for startups looking to get funded.
Five Tips for Getting a Business Loan for a New Business
1) Have a good business plan in place that includes how the money will be spent, projections for growth and repayment procedures.
2) Have accurate financial statements and cash flow statements.
3) Have a good steady revenue stream.
4) Don’t take additional debt load.
5) Be ready to provide proof that you need financing and why you need it.
These five tips for getting a business loan will help you succeed in starting, maintaining, and growing your company.
For more info on our transportation loans, see this page.