Small Business Loan Process
Whether you’re starting a business or have been operating for a few years, there’s probably a time you’ve thought of applying for a small business loan.
At Your Bookkeeping Department , the topic of borrowing capital comes up pretty often. The reason?When business owners have their well organized and everything is tracked correctly, they can clearly see their company’s strength and weaknesses. This status snapshot allows them to leverage funding as an extra source of income for more growth.
So let’s dive deeper into the topic so you can make better, informed decisions for a stress-free, profitable future.
Small Business Loan Tip #1: Apply for Just 3 Loans
So how does this happen? Every time you apply, your credit is checked, which can decrease your overall credit score by a few points. Every time! So what you can do is first take a close look at the actual lenders’ qualification requirement as well as their credit check policies, then decide to apply for three. This also tends to happen when people are shopping for homes, every time their credit is pulled, the score is affected.
Small Business Loan Tip #2: Understand the Cost of the Loan
So for example, an SBA loan can range from about 6 to 9 percent. The range changes depending on factors such as low credit, the duration of the loan or even the lender who perhaps promise a faster process. This is why it’s important to shop around, and look at various options. When it comes to small business loans, one size doesn’t fit all.
Small Business Loan Tip #3: Comprehend What Assets You May Be Risking
Small Business Loan Tip #4: Find Out About Prepayment Penalty Fees
But in some cases, a prepayment penalty fee can also be on a sliding scale, where the earlier you paid it of the higher the penalty. Your Miami Beach bookkeeping company reminds you that an SBA loan doesn’t have prepayment penalties at all, so it may be worth looking into as a first choice.
Should you need help navigating your small business loan process, reach out to a bookkeeping company like Your Miami Beach Bookkeeping Department for trustworthy advice and direction. Manal Oliver, founder of MBBD is not only an expert bookkeeper with countless years of experience and strong community relationships, she’s also a professional accountant so her advice goes a long way.
Good luck on your small business loan hunt!