Most small businesses eventually come to a point where it becomes necessary to secure additional funding in order to keep the business running smoothly and generating profits. Getting the funding from a bank is always more difficult than obtaining needed funding from an alternative lender, since alternative lenders are not subject to the federal guidelines that traditional lending institutions are. In order to improve your chances of getting a bank loan, there are some things you can do. It still may not be possible to get the funding you need, but taking these steps will give you the best opportunity.
Securing a small business bank loan
The first step you can take toward securing a bank loan will be to ensure that you have excellent credit. That means you’ll have to establish a history of paying your vendors and suppliers promptly, and you cannot have defaulted on any previous loans. If your credit history is good, then you’ll need to find out exactly what your candidate bank requires in the way of documentation when applying for a loan. Have a solid business plan ready to show your banker, because this will demonstrate that you’ve done market research, you know the competition well, and you have a good grasp of the financial flow you expect from your business.
Then you’ll need to choose the right kind of small business bank loan for the funding you need, and this should be a loan type that fits your circumstances. You should be able to demonstrate to the bank that you’ll be able to maintain positive cash flow while repaying the loan back for the number of years agreed to in the term length of the loan. The better prepared you are for all contingencies, the more likely it is that you’ll be approved for the small business bank loan. However, sometimes even the best candidates get turned away by most banks, and in that case you’ll still have the option of working with an alternative lender.
No luck securing a small business bank loan?
It isn’t surprising, since the majority of applicants are disapproved these days by conventional lenders and banks. However, alternative lenders like Artis Commercial Capital are not obliged to follow the same stringent guidelines as banks, so we have higher approval rates. Contact us today to see if we can help you secure the funding you need for your small business.