Many banks and financial institutions offer business loans regardless of your credit history. It's about your company after all, not about your own credit history. So if you want to acquire a business loan, do not just look into one bank, but also consider looking at many others and make comparison.
To get a loan, it is important to have knowledge of the conditions set therein. This way, you can guarantee you get the best offer of business loan that will protect your financial interest as well.
You can start by checking the local bank in your area. Study the offers they have for business loan. This should include the rate and the payment terms. Repeat the same process by checking other banks. Make sure to include other loaning companies such as credit union and cooperative banks since they usually have competitive offers for business loans, especially to those with poor credit score.
Expand your search of banks and loaning companies online. Actually, there are more options you can choose from via the Internet. Plus the descriptions of the offers are clearer compare to those presented by local companies. There are sites for loan resources so itâ€™s easy to find those who offer what you are looking for such as the best business loan offer.
Let's hope your visit to the bank turns out a bit differently than this one...
Upon application, you may need few documents to qualify for a business loan you wish to apply. Some of these documents include:
Financial statement â€“ This consist information of your personal assets, income, expenses and debts. You must declare everything and avoid discrepancy because this will affect your eligibility once proven that thereâ€™s lacking or incorrect information included in your document.
Past business tax returns â€“ This will also serve as your proof of the stability of your business which can be an edge when applying for a business loan.
A credit rating report â€“ Your credit report will determine whether you qualify for any loan application, including business loan. If you think that you have a good credit rating, then claim a credit report to show the lender. This is a big point that most lenders consider before approving any loan. However, if you are aware that you have bad credit rating, better not mind including credit reports unless being asked for it.
If you have bad credit rating however, some lenders may still qualify you for a business loan, provided that you have the following:
- Your company has been operating for at least one year
- It has a checking or bank account statement over a 6 month period. This bank should be the one you will use as your form of payment
- You have history of bankrupcy
- You have a lease agreement on your office/real estate (only if you're renting the place)
When you have all the requirements gathered, together with supporting documents, you are now ready to apply for a business loan and take advantage of the money you will get fot your business.