Securing business financing can be challenging. Whether you are just starting out or looking to grow, banks and lending institutions can be rigorous in their lending review practices. If you’re in the market for a loan, your credit score is a factor that lenders consider, but it’s just the start. Below are three things a lender will consider before making a final decision.
Your sales show the strength of your business. Steady and consistent sales, even if they’re not growing rapidly, show the execution of your business plan. This demonstrates to would-be lenders that you know how to run your business and makes it more likely that they’ll approve your loan application.
Time In Business
Sometimes it can be harder to get funding for businesses that have only been operating for less than 6 months. The main reason for this is the failure rate of young businesses are rather high. Lenders like to see that your business can survive those tough first couple months before giving out an approval.
Don’t be discouraged if your personal credit scores aren’t stellar. High credit scores aren’t needed for all types of financing. Lenders tend to be more concerned with any open outstanding issues, such as unpaid collection accounts or a bankruptcy that hasn’t been discharged.
There are more options available for business owners than ever before, but it’s important that business owners are savvy when submitting their business loan application. Lucky for you STRADA Capital is here to help you every step of the way. If you have any questions give us a call at (877) 478-7232.