Supporting business operations and expansion of a small business often requires additional financial support. Getting a small business loan allow you to bridge the space when you need to make investments, increase your workers, or move to a larger space. To help you get started, here are some important steps that you need to follow:
- Organize Your Office
Nothing helps small business loan borrowers more than demonstrating the administrative skills required to efficaciously run a small business. Depending on how far along your business is in its development, you need to organize your office.
- Organize your customer information in a CRM so that you can easily access it from anywhere.
- Schedule your employees and visits
- Use tools to organize invoicing and payments
- Create or Update Business Plan
A business plan proves you’ve given extensive thought to making your business a success. You should have a business plan that must cover the areas like:
- Your product or service demand
- Your competition
- How you intend to operate
- Personal and business financial records
- Staffing information
- Potential risks
You can also check out the Small Business Administration (SBA) website for an outstanding briefing on writing a perfect business plan by using their Business Plan Tool.
- Work Out Loan Details
- You will need to document in very detailed terms:
- How much amount of cash you need to borrow, avoiding the inducement to misjudge the amount you need to borrow. The maximum loan amount that you can borrow range from $5,000 to $500,000.
- Your loan objective—the reason should be related to the growth of your small business, which include equipment or property purchase, buying customer lists, and so on, and the way you’ll leverage the loan to increase your profits.
- The equity capital that you bring to your small business and, if appropriate, how you intend to collateralize the loan.
- How can you assign the loan amount?
- Work with the SBA
Present your business plan and loan application documents to a local SBA representative. Not only you will get valuable suggestions and feedback, but you’ll also learn about the SBA loans and loan guarantee programs.
- Check out Your Lending Options
Look into your lending sources, which generally includes the SBA, local banks, credit unions and alternative lenders. The SBA can frequently offer assistance in this regard.
- Apply for the Small Business Loan
Lenders will work with you to create a customized loan package for you, which incorporates all the documentation required to acquire a small business loan. This may usually encompass your business plan, your loan details, as well as 2-3 years of tax returns.
However there are some lenders who are document intensive such as SBA, while the online alternative lenders provide frequently streamlined and quick lending process with less document requirements.
With careful guidance, you will have a good chance of getting a small business loan to help start or grow your small business.