To acquire a new business loan, improve your credit score, offer collateral to potential lenders, and keep the percentage of your personal income that goes to loan payments to a minimum, recommends Forbes. Try to build a relationship with potential lenders before you need the loan, as lenders are more likely to work with a familiar and trusted person or organization.
Determine the exact amount of money required before asking for a loan, advises Forbes. Asking for too small of a loan is a common mistake that can cause financial problems down the line, but asking for too much can cause lenders to hesitate. Provide cash flow and profit and loss statements to clearly back up your budget.
Prepare a loan application package to present to potential lenders, notes Forbes. In addition to financial projections that back up the budget statement, provide resumes for all business owners. Provide relevant personal financial information, including at least three years' worth of tax documents.
It is common for lenders to view potential partners' social media websites, so make sure that all accounts provide an accurate and flattering portrayal of the applicants, suggests Forbes. The lender may require additional information before making a decision, but you should expect an answer within two to four weeks. Check on the status of the loan weekly.