Business loans can help you get the capital you need to purchase equipment or inventory, finance business expansion as well as pay employees and pay other costs. Before applying, make sure you understand how loans work and what kind of documents you’ll need submit to your lender. Be aware of the length of time it takes to complete your application, as well as any fees you might be due.
Common uses for business loans
A business loan can assist you in paying for unexpected expenses such as an injured chair at work or the COVID-19 Pandemic. Alternatively, you might require financing to cover an unexpected capital expenditure, such as upgrading or replacing technologies, purchasing manufacturing equipment or renovating a retail store. Some lenders offer credit lines that allow you to draw funds when needed, with a set maximum and interest charged only on the amount utilized.
Eligibility requirements and application process
You’ll need to provide detailed details about your company, such as the official name of your company along with its tax ID and any financial records. This could include business plans or proposals, as well as profits and loss statements, and the names and Social https://southbeachcapitaladvance.com/dri-avast-software-refund-process Security Numbers of those who are owners of 20-25 percent or more of your business. Some lenders require you to be in business for at minimum for a year. Others will accept startups or do not have any time requirements.
A mentor or advisor can help you navigate the process of getting a business loan. The organizations like SCORE have a network of volunteers who act as business mentors that provide low- or no-cost advice for startups and small business founders. You can search for a local chapter to connect with an advisor in person.