Business Loan Service

Do you have a business that you are wanting to start up? Do you have enough money to cover supplies and inventory? A business loan may be the right option for you. When you are needing to borrow a large amount of money for your business, it is only natural to apply for a business loan. You wouldn't want to get a personal loan or a payday loan. A business loan is the right choice. While every business loan program has their specific forms that you will need to complete, it is always a great idea to build yourself a portfolio. When you are at a financial lending center, you always want to be prepared. Bring all the documents that are being required of you. This way, you don't waste any time and you can begin your business loan process.

Business Loan Checklist

Here is a business loan checklist that will help you get prepared when it is finally time to fill out an application.

Personal Credit Report
Your lending company will want an in-depth credit history of the person who is applying for the business loan. Since you are acting on behalf of the business, the lender wants to ensure that you are able to repay the borrowed funds in a timely manner. There are three major credit report companies. It is wise to get the score from all 3 companies. That is so you can be prepared for whatever credit company they use. You will know your credit score ahead of time.

Business Credit Report
If you have already owned a business, prepare yourself with all of your business documents. The lending company will want to see how your business is functioning before providing you with a business loan. They will also re-run your credit report since you are acting on behalf of the business.

Resumes
There are still lending companies that want to have resumes submitted to them. Consulting with your references is what makes you become a reliable person in their eyes. They will inquire about your previous occupations and employers. Especially of you are trying to open a business.

Business Plans
This is the most important aspect of applying for a business loan. Your business plan is what will inform the lender about how they will be investing in your company. If you are a brand new business, you need to supply the lender with every detail you can regarding your new business. When they believe in your business, they will believe in you. Then you will be able to get the business loan.

Financial Statements
If your business is already up and running, provide recent documentation from the past 2 years. This will give the lenders an idea of how you and the business have been functioning. It will also show them if you will be able to repay the borrowed funds back in a timely manner. If you show them that your business is failing, how will you be able to guarantee the lending company that you will make a payment on time? Know your facts ahead of time.

Collateral
Collateral requirements will vary greatly. There are many loan companies that do not require collateral at all unless you are a high risk applicant. Being a high risk applicant for a business loan is not a good thing. That means they are willing to give you a business loan but you may not be trustworthy to pay your bills. They will ask for collateral such as a house, property, mortgage, vehicles, etc. Anything that is worth money to them, they will hold. That way, if you fail to make your payments on time, the collateral will then be theirs to keep. Read all regulations and requirements when it comes to this section.

Business Loan Questionaires

Lending companies will vary on their checklist items. However, this is a great start if you are new to the business loan process. By having all documents prepared, you are saving yourself a lot of time and headaches. Being prepared is only half the battle for a business loan. You must convince the lending company that you responsible enough for them to provide you with a business loan. Here are a few questions you may be asked by your lending company. Knowing the answer to these questions could be critical. It is like an interview that you do not want to fail.

Why are you applying for a business loan?
How is the business loan going to be used?
What debt does the business currently have?
Who are the members on the management team that run your business?
What inventory is needing to be purchased?
Who are the vendors that you will be purchasing from?

This is only a small amount of questions that will be asked by your lending company. Again, being prepared is the hardest part of the business loan process. Once you are confident with what you are doing, everything from there on out will be easy. You don't have to stress yourself out with trying to find a lending company. At Lexington Payday Loan Solution, we take the hard work out of finding a company to provide you with a business loan. All you have to do is apply. We have associates that can walk you through the entire process so you do not miss a step. If you cannot apply online, we can either mail a business loan application to you or come to the store. The convenience of filling it out at home is that you have the time to yourself to really understand what you are filling out. Take your time and read every line on the application. You never want any surprises when you are finished.