As a small business owner, there usually comes a time when you find yourself in need of some working capital, or some pocket change, if you will.
Reasons for this range from a need of some working capital for new equipment such as laptops or machinery, to a need to pay employees, refinance existing debt, or simply, grow the business.
While the reasons for considering a small business loan seem similar, and are, the fear of being rejected by the bank or lender post-application.
In short, the fear disappears as you prepare more. To do so, you should be aware of the qualifications, ways to help ensure your application will be accepted, and the differences between traditional bank loans versus a small business lender, like us at REIL Capital.
So, what are the qualifications?
Qualifications for a small business loan definitely vary between lenders. So, to help give you an idea of potential requirements, we’ve added our personal list below:
- $100,000 minimum annual revenue
- 3+ years in business
- 650+ credit score
- 145+ business score
- No bankruptcies, outstanding liens, or judgments
Even if you’re still curious about small business loan requirements, check out our other blog here. Now being aware of the qualifications, you might not be entirely sure of whether or not you meet each standard. If this is the case, it would behoove you to learn how to better position yourself. Don’t worry, that’s all below too.
How can you help ensure that your application will be accepted?
- Firstly, Gather the required documents: bank statements, tax returns both personal and business, profit and loss statements, balance sheets, and more.
- Secondly, Improve your personal credit score: those who you seek funding from, especially banks, may require a personal guarantee on the debt, so the better your credit, the better your odds.
- Thirdly, Go in with a business plan: the biggest concern of lenders is the how. How are you going to use the provided funding?
So, now you’re confident in what you can bring to the table. The remaining question is “well, who do I choose to help me?” A bank? A lender?
What’s the difference between getting a traditional bank loan and a small business loan from an alternate lender, like us at REIL Capital?
In order to give you the full picture, we’ve taken what we provide and compared that to what traditional banks provide. We’ll leave this here:
SBA Loan with REIL
- Loan Amount: $30,000 – $5,000,000
- Terms: 10-25 years
- Interest Rates: 6.5 – 8.75%
- Speed: About 1 month
Traditional Bank Loan
- Loan Amount: $250,000
- Terms: 1-20 years
- Interest Rates: 10%
- Speed: 2-4 months
After learning the qualifications, understanding how you can improve your standing, and seeing the comparison of traditional banks and SBA loans, you are more prepared than ever.
That’s what we strive to do. After all, we want to make it as easy and as quick as possible for you, as a small business owner, to secure funding for your business… starting with a three-minute application process.
So, if you’re overcoming challenges in your business, or you just simply need help and financial guidance, please do not hesitate to reach out. We’ll tell you which documents you’ll need to apply, and then facilitate the entire process alongside you.
