If you’re ready to apply for a small business loan or unsecured business line of credit, there are 3 steps you should take before applying. This infographic outlines what those steps are and what you need to do.
Step 1: Get your Credit Checked
Your persona credit history will serve as one of the primary determining factors in whether or not you will be approved for an unsecured business line of credit or small business loan. Before you apply for either, check your personal credit history. You shouldn’t have any derogatory or delinquent accounts, late payments, and/or defaulted accounts. If you see anything on your credit report that looks like it will affect your chances of getting approved, chances are it will. You will need to work on repairing any derogatory or delinquent account negatively affecting your personal credit history before you apply for an unsecured business lines of credit or small business loan.
Step 2: Create your business plan
If you have less than perfect credit or if your is a startup, having a business plan will increase your chances of being able to obtain a small business loan. Most traditional small business loan lenders will ask you to see a business plan when applying for a small business loan. It’s important to develop a business plan that outlines everything a lender will want to know about your company including, what products or services you offer, how your will advertise and your target market, what your expenses will be and how much revenue you will generate. When you go in front of a lender , be ready to verbally explain everything in your business plan. It will directly contribute to you getting approved or denied for a small business loan.
Step 3: Consult with expert
Ultimately, the best way to improve your chances of obtaining an unsecured business line of credit or small business loan is to consult with an expert. The right experts will be able to tell you exactly what you need to do to get approved for funding. They will be able to review your personal credit history to determine if it will meed lender requirements and help you develop a business plan that will be satisfactory to lenders.