No matter the era, small business loans are a viable option for securing the funding necessary to bolster your company – whether you’re looking to acquire a preexisting business, start one yourself, or obtain equipment or office supplies. In the following, we’ll answer some of the most popular questions about conventional lenders as well as alternative ones.
Is It Difficult to Acquire a Small Business Loan?
As is the case with most things in life – if you prepare beforehand, the process can proceed very smoothly. Make sure that all your business transactions and records are above-board, so that the lender can ascertain your ability to repay the debt incurred by the small business loan you’re seeking. Due diligence and preparation are key to avoiding most of the anxiety associated with obtaining a business loan. That withstanding, the process is straightforward.
Factoring In Your Creditworthiness
Although generally speaking, your credit score is an important factor for most lenders – this only concerns traditional lenders such as banks. There are numerous private lenders out there willing to give you a business loan that isn’t tied to creditworthiness metrics; however, usually, these require collateral or a merchant cash advance (MCA) set-up.
Ideally, you encounter a private lender that specializes in small business funding; these tend to provide funds predicated on the promise of future success, rather than the reality of past financial health. As such, the important attributes are industry, cash flow before the loan, and the length of time you’ve been established.
What Are the Funding Available Options
You’re already aware of the traditional business loan, and if you can satisfy the credit score requirements this may be viable for you. If not, then some of the other options include venture capitalists, family member funding, and angel investors. There’s also crowdfunding if you have a marketable idea and program to get this idea in front of the public.
This just touched the surface of how to acquire a business loan; for more information, contact the experts at DAL Commercial Capital on their website.