How To Apply Small Business Loan

Like BDC, some chartered banks have easy online applications for business loans. For example, National Bank advertises a 72-hour application process. You can apply if you’ve been in business for 6 months and have monthly revenue of $7K or more.

Most banks and lenders will require something of value to shield the lender. Typical business items that qualify as collateral include real estate, buildings, vehicles, equipment, inventory, and accounts receivable. Cash flow. The more money your business is currently making, the less of a loan risk it’ll be to the lender—simple math.

It can take months to get a business loan, especially one backed by the Small Business Administration. By understanding all your options and not rushing the process, you’ll be in the best position to get approved — and avoid wasting time or money. Here are four steps to apply for a small-business loan. 1.

Having a detailed, written business plan can help you get approved for a first-time business loan. Your business plan should help show lenders that you have a viable business model, that you have identified a lucrative market for your products or services, and that you have detailed financial projections to prove that your business is creditworthy.