In our last blog, we offered up a few answers to the question posed by the title of today’s blog. Not having any collateral, having a bad personal credit score and not coming prepared with a detailed business loan are the main reasons that we listed. On CrowdfundInsider.com, Ethan Senturia admits that a lack of preparedness can hurt a business owner’s chances of successfully securing a business loan.
To be more specific, Senturia recommends to merchants that they make themselves clearly aware of why they want money from their banks. And while he acknowledges that it may even sound “silly” to have to make such a recommendation, it’s a “big” part of attaining a loan. “You’d be surprised how many business owners want to expand, know they need funds to do so, but don’t have a specific idea or plan around how to do it,” he notes, “They will just ask a lender for money for the always-vague ‘working capital’. Don’t be that guy.”
What details do loan officers require in order to approve loan applications? To reiterate, a strong credit history, collateral and a detailed business plan will be requested. And when it comes to the business plan, it’s pretty important to be thorough and specific. Senturia advises business owners to make lists of their goals, detailing what it is they need to buy or do and how much those things will cost them.
“This is also the time to figure out the payoff for each of those investments; how much will your business grow, and how much more will it make, by getting the financing needed to do each of the things on your wish list,” he writes, “This enables you to justify your request and gives the lender confidence in your growth potential.”
How important is it to be prepared? It couldn’t be more important! In fact, many business owners fail to secure loans from their banks because they haven’t done their research. They’re not aware of their options, they don’t know what the eligibility requirements are and they haven’t prepared a list of questions for the loan officers they meet when they first go to their banks. Forbes.com insists that you do your research and ask questions to know more about your loan options.
“When you find the loan package you are most interested in, contact the bank directly to find out upfront what the requirements are for loan eligibility,” reads the site, “You may need to make an appointment in person to discuss the necessary materials, documents, and timelines you will need to get started on the approval process. Banks have different requirements and it will be important to know what they are upfront so you can be prepared.”
Is there a faster and easier alternative to securing extra working capital? You bet there is! Synergy Merchants’ merchant cash advance program eliminates the long and arduous process that comes with applying for a business loan. Not only does a merchant not have to worry about credit, collateral and business plans, but they don’t have to worry about waiting such long times to get the money they need.
In many instances, we can both approve and fund our clients within 24 hours! For more about our merchant cash advance program or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026 or email us at firstname.lastname@example.org.