Getting approved for an unsecured business loan is all about preparation. If you properly prepare yourself before applying, you can maximize your chances for approval. There are a number of things you can do to increase your chances of getting approved. This includes finding out the lender approval criteria for unsecured business loans, checking your personal credit history, and gathering your (supporting) financial documentation before you apply.
Find Out the Lender’s Criteria for Approval
Before applying for unsecured business loans (or any other type of financing), it would be wise to learn the lender’s criteria for approval. Every lender has credit requirements you have to meet to be approved. Knowing those credit requirements ahead of time will put you in a position to prepare yourself to meet them.
Check Your Personal Credit History
Once you know the credit requirements you have to meet to be approved for unsecured business loans, you should check your personal credit history to see if it matches up. Unsecured business loans typically require a good personal credit history to get an approval. It’s important that you know if your credit is good before you apply. You shouldn’t have any delinquent or derogatory accounts reporting on your credit. This includes late payments, collections, charge-offs, tax liens, bankruptcies, repossessions, or foreclosures, etc.
Since this is unsecured financing, you will not have to pledge any collateral or assets to be considered for approval. Therefore lenders will analyze your personal credit history with a fine tooth combine to ensure you are creditworthy. Your personal credit will be used as collateral when applying for an unsecured business loan.
Gather Your Financial Documentation
Depending on the lender, you may have to submit supporting documentation such as your w-2’s, check stubs, tax returns, and/or bank statements. Lenders may use your financial documentation to get a better understanding of whether you make enough money to service the debt (i.e. pay the unsecured business loan back on time). It’s important to have this information on hand because you may be required to submit it with your unsecured business loan application.
Now You’re Ready to Apply
If you’ve taken all of the necessary steps to prepare yourself and think you meet the criteria to be approved for an unsecured business loan, now may be the time to apply. The experts here at LenCred are well versed in the areas of unsecured capital and can help you apply for an unsecured business loan. Contact us today to find out if you qualify.