Does your business need some serious work? Is your building showing signs of its age? Are you struggling to keep up with payroll and feel like you need someone to bail you out? These are all common problems for small businesses. There are solutions. Research is key when trying to make building improvements or get caught up with finances. Business loans are a common, and often great solution. However, not all business lenders are equal.
There are a lot of predatory lending companies out there. They entice you by offering you large sums of money with “easy repayment options”. Well apparently some people’s idea of “easy” is a lot different than some others. When shopping around for a business loan, seek out a company with a strong reputation, such as StLouisBusinessLoan.com The internet is a great source for this information. However, do not base your decision on internet research alone. Call around. There are likely other businesses in your area that have at one point or another, needed a business loan. Look for businesses that have recently renovated and ask the owner about it. Be bold. A lot of small business owners are happy to help another small business owner. Word of mouth can be the best form of research when dealing with business loans.
What do the business lending companies require in order to secure a loan? Well every company is different. However, most lending agencies will require you to provide 2 or 3 months of business bank statements in order to prove that your business has income. Many lenders also require a minimum credit score of 625. As mentioned earlier though, all agencies are different and you will need to call them to get their actual requirements. Another thing that lenders like to see is that you’ve been in business for more than just a couple of months. Some require 6 months as an established business.
Lastly, and perhaps the most important factor when selecting a lending agency is the interest rate they offer. This is often how you can screen out the predatory lending agencies. Any lender that sets an interest rate above 25% should be avoided like the plague. Business loans with low interest rates are fairly easy to find. However, before you even start looking at interest rates you need to determine what you can afford, as far as monthly payments are concerned. So do your research, shop around, and watch those rates! I hope this article has been helpful and you are able to get the funds you need to keep your business rolling.