If your business is in need of working capital funds, you can use a few tricks to get your business loan approved faster:
1. Plan Ahead
The number one secret to securing your business loan quickly and easily is to set a good foundation before you need the loan. Don’t wait until you're ready to spend the money because it can be difficult to get approved for a loan with the terms you're looking for under a time crunch. There are lenders with 24-hour approval and fast funding, but you want the ability to choose based on the terms and requirements that suit your business.
Instead, start building a solid credit history by making regular monthly payments, keeping on top of your bills and extending your personal (and business, if you have one) credit limit. When loan providers see that you have a good credit score and are conscientious about paying bills, you'll be more likely to get approved for the loan you want.
2. Come Prepared
Different financial institutions will require a variety of documentation to approve your loan. Bring all the necessary documents with you so that the back and forth is short and your loan process can move quickly. Some documents that a loan company may request are:
- Credit history, both personal and business
- A solid business plan
- A projection of future growth/revenue increase
- Guarantors/signed agreement from all business partners
3. Do Your Homework
It’s important to research your prospects before choosing the best business loan provider for you. Take personal recommendations from people you know who have used loan providers in the past, as you'll know you can trust their experiences. Read lender reviews to learn more about individual companies' offerings, rates, and what it takes to get approved.
4. Start Small
Most often, large banks and financial institutions don't offer alternative lending options. If you have a bank that you’ve dealt with regularly, they may take your previous accounts with them into consideration and approve you for a loan on good faith. You are more likely to find success with smaller, local lending agencies or online lenders for fast, easy approval. There's often less of a wait and more flexibility in terms, funding amounts and what kind of credit history they'll require.
Take Action Now
If you need a business loan fast, follow these secrets to increased success and give your business the financial reprieve it needs to really pull ahead of the competition. Find other creative ways to finance your business, and jumpstart the returns today.