5 Easy Ways to Ensure Small Business Loan Approval

Starting — or expanding — a small business can be a headache. And if you need a loan to get the business going, be sure to keep these five tips in mind.

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Starting a new business, or even expanding an existing business, often brings with it the need for some added financing. Hopefully, you have a business model that allows your company to thrive solely on the basis of profits — because in the long run, that’s the only thing that’s sustainable. 

With that said, the need for a small business loan might one day arise, and when it does, it helps to know the best strategies for getting that loan approved. 

1. Do your research

A good starting point is to research the various financial institutions that provide loans; there are many banks out there, and some are going to have more experience with your industry and target market than others. These are the banks you want to apply with, but how will you know which ones they are? Check with your local Chamber of Commerce for some suggestions, or reach out to peers within your industry. 

As you check out different lender websites take note of banks that participate in SBA-guaranteed loan programs. This is a sure sign that they have plenty of experience loaning money to small businesses. 

2. Look locally

In particular, it is smart to look at local banks and lenders. That’s not to say that a large, national lender couldn’t or wouldn’t help you, but a local bank will be better positioned to appreciate what your business does for the community — and thus, to approve your request for a loan. 

3. Be as specific as you can

When it comes time to actually apply, try to offer the bank as many specifics as possible. The bank is investing in you, after all, and it’s only natural that your lender will want to thoroughly understand who you are and what you are trying to accomplish. 

Don’t hold back the details, then, but rather offer substantive answers to the bank’s questions about how you intend to use the money, and how much you need in order to accomplish your business objectives. 

4. Prepare your documents

It goes without saying that you will need to furnish the bank with plenty of documentation. Being prompt in providing full documentation, when asked for it, is essential for getting your loan approved, so be prepared to gather full reports about your company’s financial background, future earnings projections, and even documents reflecting your own personal finance. 

Gather anything that might be relevant to your company’s finances — being thorough can only help your case. 

5. Polish your pitch

While written documentation is a big part of this process, there will ultimately come a day when you need to present your ideas in person — and when you do so, you need to be poised, polished and confident. 

Make sure your appearance is professional and your attitude positive. Practice your pitch in advance to make sure you have it down pat and can deliver it without jitters.

These tips won’t necessarily guarantee your loan’s approval— but they can definitely help you stack the deck in your favor.

About the Author

Amanda E. Clark is the president and editor-in-chief of Grammar Chic Inc., a full-service professional writing company. She is a published ghostwriter and editor, and currently under contract with literary agencies in Malibu, Calif., and Dublin, Ireland.

Since founding Grammar Chic in 2008, Clark, along with her team of skilled professional writers, has offered expertise to clients in the creative, business and academic fields. The company accepts a wide range of projects and often engages in content and social media marketing, drafts resumes, press releases, Web content, marketing materials and ghostwritten creative pieces. Contact Clark at www.grammarchic.net.



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