As you work to get your business start-up off the ground, finding the initial funding will be the key to your success. Acquiring a business loan is relatively straightforward, but not everyone receives approval right out of the gate. Because of this, knowing what to provide during the application process and how these factors can make or break your chances of getting the loan you need is crucial. These are some of the top business loan qualifications you should be aware of and what they mean to a potential lender.
Detailed Loan Knowledge
First, you should know the type of loan you need to fund your business. There’s a series of different loan varieties you can apply for. From traditional financing to peer-to-peer methods to platform lending, each type has its own specific process and requirements. As such, expanding your knowledge of the subject is the best way to determine the best loan for your business.
An Established Business Plan
Having a solid business plan for your start-up is also vital. Before investing in your company, lenders want to see that it’s a business worth investing in. Whether it’s a breakdown of the budget to an overview of the products or services you plan to offer, a business plan will provide lenders with a peek into your ideas. This way, the lender feels as though they’re going into the deal better-informed of your ability to pay them back.
Solid Credit Score and Credit History
Another key business loan qualification to pay attention to is your credit score and overall credit history. Having a solid credit history to demonstrate your reliability to lenders is vital. Lenders look for individuals they can trust to pay back what they owe, and your credit score is the perfect way for them to see this at a glance. Therefore, with a good credit score, you appear much more trustworthy and are more likely to get the loan you ask for.
A Strong Personal Résumé
Your personal qualifications for running your business will play an important role as well. As with any other job, a résumé allows potential lenders to see how qualified you are to run the business. After all, you’ll still need to run your company and generate profits, and the ability to do so comes only with the necessary industry knowledge and skills. Providing a résumé assures lenders that you have what it takes to make your start-up a success.
Past Profit and Loss Statements
If your company is already operating within the industry, we recommend providing past profit and loss statements, too. These show lenders exactly how well your business is doing and whether their investment will be safe.
For new business start-up funding, reach out to Pango Financial. We offer a variety of funding solutions to help you get the money you need. Let us work with you to design a plan that perfectly accommodates your funding priorities.