Getting Approved for a Business Loan – FinanciaRUL

In general, the higher your credit score is, the more likely you are to be approved for loans and get the lowest interest rate.
Collateral and/or personal guarantee. Some lenders require you to pledge collateral–something of value, such as equipment or inventory–it can seize if you default on the loan. The lender may also ask to provide a personal guarantee. It means that you’ll need to cover the loan using your financial assets, like your savings, or any valuable asset.
The length of time a business has been in operation. Traditional banks require the company to be in operation for 2 years. Online lenders usually only need one year. If your company for less than one year, don’t be discouraged. Some online lenders will approve eligible applicants that have been operating for about six months.
The annual revenue. The amount of sales that you earn annually is an important factor. Contact a banker about the requirements and then review your financial records to see the extent to which they’ve been met. edlwxyxrvg.

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