The Art of Mastering Businesses

Getting Approved for a New Business Loan Application

Thinking of getting a business loan but clueless about the process? You’re certainly not alone. There’s tons of paperwork and computations involved. And then you have to wait for the bank’s decision. The good news is, we just got progressive when it comes to the whole system. Now there are alternatives allowing you to break through the conventional barriers. But this is the general picture:

Dealing with Banks

First, take note that the bank would actually want you to get a loan. They certainly want your application to be successful. After all, one of their major revenue sources is the interest you’ll pay. But of course, that’s also the number one thing they need to get out of the way – that you actually have the ability to pay. Your main task when getting a business loan is to present a good business case and prove that approving your loan is a good move.

Common Requirements

As you may already know, there are several requirements for applicants of new business loans, including:

> income statements and balance sheets over the past 24 months;

> updated financial statements;

> a business plan that shows the path your business is taking; and

> bank account records and tax returns to support your income statements.

Modern Accounting Software

If you use modern accounting software, you don’t have to pull up any of the mentioned documents. All information crucial to applications for business startup loans, such as growth trends, income and expense records, and forecasts, will be provided by the software. And with your software set up with bank feeds, where your income and data records can be obtained straight from your business account or accounts, the loan approval officer will be more confident that the information is correct.

Presenting a Good Business Story

As we said previously, those who are interested in getting small business startup loans need to convince the bank that their business is worth the gamble. To convince them, you have to be aware of how bank people think. What is risky for them, for example? What are strong and weak arguments for them? Knowing the answers to these questions allows you to tell your business story in ways that increase your chances of getting the loan. Consulting an accountant for help is a good idea.

Immediate Small Business Startup Loans

Lastly, there’s a welcome new type of lender these days that goes over your application online and provides access to capital in an instant. These lenders basically think more about what could happen to your business in the future instead of what had actually happened in the past. They won’t bother checking your credit score, for instance. Instead, they will use some analytical tools and start studying your business, and whether or not it will likely succeed.