Certain requirements need to be met to actually get approved for the small business loan you need. If you don’t meet those requirements, putting together the application will turn out to be a total waste of time.
Though every lender will have their own process, here are a few checklists of the most common things they look at. You can also check out here to get more information about loan broker training programs.
1. Personal credit score
While your personal credit score doesn’t really say anything about your business, it remains an important factor in securing business credit.
As a small-business owner, the benefit of maintaining a good personal credit score will probably never go away. Lenders look at your personal credit history as a measure of your past credit performance and your willingness to meet your financial obligations.
2. Your business credit profile
Unlike your personal credit score, your business credit profile speaks directly to how you meet your business obligations.
Companies create profiles and scores based upon how timely you pay your vendors, how current you are with your business credit card payments, and how you pay your other business-related bills. It also includes the type of industry you’re in and how other businesses like yours perform over time.
3. Time in business
Time in business speaks to a track record that can be measured and evaluated. The longer you’ve been in business, the more a lender will be able to measure whether or not you “can” and have met your business financial obligations.