Anyone who has applied for a small business loan before will know just how difficult it is! The process as a whole is quite complex and if you don’t know one component it could lead to disaster down the track.
There are so many things you have to do before you even submit your application! It is important that you take into account all the below points as it will make your application more appealing and hopefully result in approval.
1. Research for the best rate
When you borrow money you will need to pay interest on those funds back to the lender (on top of the money you borrowed). Interest rates should play a major part in your decision making process. You will need to research and find the best rates for the small business loan you are looking for. Once you have found the lender you like, you can tailor your application to them. Research also ensures that lenders don’t try to screw you over because you understand what they are saying and know when to question if something doesn’t seem right.
2. Check your credit report
By checking your credit report you have a better idea on all the details kept on your file. You will need to ensure all the details on your credit report are correct because if there are any false defaults, etc. this could prevent you from getting the loan you need.
3. Get your documentation
When applying for a loan there is a lot of documentation. You will need to ensure you have all the required documentation and the information is up to date and correct. This documentation will support your application and show to the lenders that you have the ability and capacity to have a loan, the more relevant documentation the better; from bank statements to your business plan and competitor analysis, etc.
4. Understand your needs
You must have a clear vision of what your needs are because if you don’t know, then how are you going to explain that to the lender? Things you will need to think of:
- Why do you need to borrow money?
- How will you repay the loan?
- What will the money be used for?
Oyster Financial offers help with applying for low doc loans. Get in touch with us today.