You may need financing as a business owner to boost cash flow, purchase new equipment or expand operations. With a business loan you borrow money and repay it over time with interest. Depending on which kind of business loan and lender you choose, there will be different terms and requirements that include whether the loan is secured or when a guarantee is required. If you wish to increase your chances of getting approved, apply with a lender that will be looking at the financial health of your business as well as your personal credit score and history.
When choosing a business loan, make sure to look at the total amount of the loan, including the annual rate as well as any fees or penalties. You should also check whether the loan is secured. This typically requires collateral such as inventory or real estate, or other assets. Unsecured business loans however, do not require collateral, but typically come with higher interest rates.
All lenders will look over your personal and business credit scores prior to approving you for an loan, and some will look at your business plan and other documents during the application process. When applying for a loan, you need to have your documentation ready so you can submit it quickly. You can provide your personal and business tax returns as well as bank statements and cash flow forecasts. Some lenders provide expedited processing to qualified borrowers.