Are you a small business owner seeking funds to grow your business in 2016? Here are three tips to review before you start searching for financing options.
1) Maintain a healthy business and personal credit score.
— Evan Singer, general manager of SmartBiz
Good credit is key to getting a well-priced loan quickly. It’s important to be aware of both your personal score as well as your business score. If your company doesn’t have much credit history, you can improve your business score by adding historical payments with Dun & Bradstreet. “You can actually provide Dun & Bradstreet with vendors that you’ve been paying consistently. They will incorporate that information to improve your score,” says Singer.
2) Gather all your documentation before applying.
— US Small Business Administration
Before you start applying for loans, gather some basic documentation about yourself and your business – such as a demonstrably good income record. Review the comprehensive 7(a) loan application checklist from the Small Business Administration. The list includes typical items you will need for any small business loan application. The more organized you are, the faster you can get your application approved. Strive to keep your business documents in order and up-to-date.
3) Look for an Online Lender
— Ty Kiisel, main street business evangelist, marketing veteran
Mr. Kiisel is a frequent contributor to Forbes magazine and covers small businesses and small business financing. He has written about the often-cumbersome SBA loan process and how disappointing it can be for small business owners who discover they don’t qualify for a loan. It’s often because the loan amount is too small and too expensive for some financial institutions. Kiisel suggests seeking a lender who has taken the application process online. Online lenders, like SmartBiz, have eliminated the time it takes to submit paperwork associated with a loan application. SmartBiz is the only online SBA lending site. The SmartBiz technology reduces the typical months-long application process to less than 30 minutes with borrower-friendly applications, instant pre-approval, and funding in as little as five days after application completion.
Do you need extra working capital to increase marketing efforts for your small business? Visit SmartBiz today and use the promo code “blog” when you create an account. You can discover in about five minutes if you’re qualified for an SBA loan.