If you are planning on starting a business, chances are that you will need a business loan in order to finance the project. At BRM Lending Team, we are committed to helping all of our clients achieve their long-term financial goals, and that includes helping you get your business off to a great start. In this article, we’ll go over the basics of business loans to help aspiring entrepreneurs like you take their first steps towards their goals.
What Lenders Look At
When it comes to business loans, most lenders will look at your personal credit history, your time in business, and your annual business revenue. Your credit history tells a lender about how consistently you pay down your debts, so good credit habits are a must. Lenders will also want to know about your time in business and will usually ask to look at your business statements. This can give new businesses a disadvantage with traditional lenders, but with good credit and strong sales you may be able to overcome it. Lastly, lenders look at your business’ annual revenue to ensure that you will be able to pay back the loan.
Where to Get a Business Loan
We understand that one of the most confusing steps of applying for a business loan is knowing where to look. There are many types of institutions that offer business financing, including:
- Credit Unions
- Government Organizations
- And More
Our team offers you the freedom and flexibility to choose from a wide variety of different lenders to get the best terms for your needs. We will help you create a personalized roadmap for your business and advise you every step of the way to ensure that you get the results you are looking for.
Documents You Will Need
As with any other loan, there is a lot of paperwork you’ll need to sign in order to finalize a business loan. While online and other nontraditional lenders may not require as much documentation, for a traditional bank loan you will typically need to supply the following documents:
- Business financial statements
- Bank statements
- Current lease or loan documents
- Tax returns
- A business plan
If this seems like a lot, don’t worry–our team is here to help you get all of these things in order so that you can get the money you need to start your business right.