I know some of this seems redundant from previous blogs I have done, but, it seems I need to repeat some of the highpoints (or low points depending on how you look at it). Here is short summary of what you need to get together.
Remember this: Almost 90% of all bank loans get turned down.
- Check your credit BEFORE you apply. Places like www.creditchecktotal.com will give you all 3 bureaus.
- CORRECT or explain anything that is negative.
- Create a marketing and game plan (in writing to present)
- Create a BUDGET
- Complete a PFS (personal financial statement)
- 3 years business and tax returns
- 3 years personal tax returns
- Profit and loss statement
- Cash flow is one of the primary things lenders look for-generally most lenders give around 20% of annual sales
- List number of clients (lenders like lots of clients-low number of clients means high risk to a lender
- Get your SBSS score (small business scoring service). You can get this at Nav.com
- If you are looking for an SBA loan: the requirements are a minimum score of 140, most lenders will NOT provide a loan if SBSS score is under 160. The range is 0-300
- SBA loans are difficult to get and can be expensive and take up to 3 months or more to fund. So, if you are in a hurry look elsewhere that is why we offer short and long-term loans.
- Personal FICO score-0-840 most lenders want 650
- D-UN-N-S number (Dun and Bradstreet-100 as the highest a score of 80 is good-free
- Most secondary lenders (non-bank) have very short terms and require daily or weekly ACH payments form your bank
- DO NOT apply at several banks or lenders at once or keep applying-every time you do this it pulls down your credit score-you will not get a loan.
- Most lenders require a minimum of 3 – 6 months in business and do not do startups.
- Have a website, subscribe to places like Yoast (SEO), Rankcrew.com for backlinks, make sure it is HTTPS (secure) you can have the greatest website but who cares if nobody can find it.
- Have engaging content-you only have around 2 seconds or so for someone to keep looking or come back to your site (like this-a blog)
The old bait & switch,” get approved in seconds and get funded in hours”- in lending instant gratification can cost you a lot of money. High interest, short terms, and not as much as they promised or even turned down after they actually pull your credit.
We hope this helps you, our goal is always to help businesses and individuals who want to start a business.
We have realistic lending programs from established to start ups-Lendingcapital is a national direct lending platform.
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