You need financing, but what next?

Posted by: LISC Small Business on June 27, 2016

Once you've decided to apply for a small business loan, it's time to get organized! If you aren't already keeping an accurate track of your finances, you'll need to get everything in order before approaching a lender. (Hint: our free online financial tool can help you!) Below are five additional tips for borrowers just starting the loan application process.  

  1. Know how much financing your business needs. Determine your total project costs and how you will use the loan: is it for working capital? to purchase a new building?
  2. Know how much financing your business can support. Most - if not all - lenders will require a down payment. For our own program, we require at least 10% down for existing businesses and 30% for startups. Determine how large of a down payment you'll be able to provide comfortably.
  3. Practice your business pitch. The better you are at explaining your business, the easier it is for lenders to understand your company and the smoother the loan process.
  4. Review your credit report.  Lenders will pull your credit report, and you want to make sure everything on it is accurate. Reviewing your credit report ahead of time gives you a chance to fix any errors. Our team uses www.annualcreditreport.com to review our own personal credit reports.
  5. Know your options. There are a lot of ways to finance your business - from crowdfunding to SBA loans - but make sure you research the different types of loans and lenders so that you can make an informed decision. SBA LINC is one way to connect with SBA lenders.