2 Smart Moves To Improve Your Chances Of Getting The Small Business Loan You Need

Running a small business is a lot of work, and it can often take years to start making a profit, which is why getting a small business loan can be vital to the overall success of your business. When you apply for a business loan, you want to go in with the strongest application possible.  

Smart Move #1: Improve Your Personal Credit Score 

The truth is, when you have a small business, more often than not, the lender is not only going to look at the financial information for the business, they are going to examine your personal credit history as the owner of the business.  

The lender is going to examine your personal credit history in order to see how effective you have been at paying back other debt you have taken on. The lender is going to look at your personal credit history to see how much debt you are carrying in your personal life and your business because oftentimes one can impact the other.  

The smartest thing you can do is pay all of your bills on time, and make sure you are not using all of your approved credit lines. This is a straightforward way to increase your personal credit score. Having a high personal credit score will increase the chance that you will be able to get the business loan you need to grow your small business.  

Smart Move #2: Get Expert Advice on What to Borrow 

Next, when you go and ask for a loan for a specific amount from a lender, make sure you have a solid reason for asking for that specific amount of money. One way to increase the credibility of your ask it to work with other financial experts to determine what loan size you need before you go to the bank. 

For example, you could meet with your accountant or financial advisor to determine how much you would need to take out to execute your idea. You could also meet with your board of directors if you have one.  

Being able to show and explain how you and the experts you consulted came up with the loan figure you are asking for will help show the lender you are taking this process seriously and will show them that you have a specific reason and purpose for the money you are asking for.  

When it comes to getting a small business loan, two smart moves you can make to increase your chances include improving your personal credit score and getting expert advice to back up the amount of money you are asking the bank for. Both of these actions will show the bank that you are responsible with your money and that you have a specific plan for using the loan to improve your business.  

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