Small businesses are so important to the success of our economy. Though most of us simply picture a two- or three-person operation run from home offices, a model that does exist in 52% of all small businesses, they aren’t to be discounted. About 65% of all new jobs created since 1965 have come from small businesses. Despite their immense impact on the nation’s markets, many are still left out in the cold by business lenders, even when they need support for basic operations. Indeed, 63% of all small business owners seeking loans cited cash flow needs as their motivation. Still, about half are left using personal credit to finance their companies.
It’s hardly a surprise that many business owners are abandoning banks and traditional lenders. In many cases, an owner needs a business loan fast, and simply can’t wait around to get bad news about funding. For these reasons, business cash advance loans like accounts receivable financing and merchant cash advances have become popular, despite their high premiums. But what if you can’t commit to such large deductions from your net profit? Don’t count yourself out yet. Here we’ll provide a few tips for expediting the loan process and getting your business loan faster.
- Don’t try to strong-arm your lender. Many applicants like to tell potential lenders that they’ve already spoken with many other lenders, even when they haven’t, in order to indicate that they’re looking for competitive offers. This might work in other industries, but not in the lending industry. Especially because many agencies present your case to other institutions in order to help you find the best opportunity, you’ll only hurt your case if you’ve already approached those lenders and been rejected. Instead, find reputable lending companies and ask them to help you convey the right message to the right lenders.
- Be transparent. There’s some discomfort that comes along with divulging all your personal financial information to a stranger, but you’ll have to get past it if you want a business loan fast. The more honest you are, the faster the process will go, and the better able a lender will be to help you.
- Have your paperwork ready. Your quest will go faster if you have all these things ready:
- Three years of personal tax returns for all owners with 20% of more ownership.
- Personal financial statements
- Three years of corporate tax returns for any affiliate companies owned by any applicants with more than 20% ownership
- A business plan and descriptions
If you’re serious about getting a business loan fast, the ball is really in your court. Lenders can only process your request quickly if they have everything they need up front and if you haven’t created complications. Be clear, be forthcoming, and be prepared if you want to help your business get back on its feet fast.