Applying for a small business loan entails educating yourself on the process, gathering documents and filling out the application. Follow the lender's instructions carefully, ase an incomplete application or missing documentation can cause the lender to deny the loan.
- Review your credit report and score
If you know lenders require you to have a 650 score to get a small business loan and you only have a 620, take time to raise your score. Report errors to any credit bureau that displays errors. Reduce debt, if necessary, and resolve past-due accounts, charge-offs and other blemishes.
- Gather your documents
Lenders want to know why you want the loan, how much you need, what your plan is for repayment, what collateral your business has, what the value of your assets and liabilities are, and your current and projected sales. Gather records such as profit and loss statements, personal and business tax returns, and a copy of your business plan to document these items.
- Fill out the application
Fill out your application and submit it to the lender with all the documentation the lender requires. Plan to meet with the lender in person or by phone to review the application and associated documents. The lender may request additional documentation during the review process.