Gather required documents needed for small business loan funding
Having these documents accessible when applying for a small business loan will expedite lender approval and will determine the loan terms and amount.
- Social Security number or Tax ID
- Business licenses and filings
- Tax filingsProfit/loss statement, balance sheet, bank statements
- Review individual lender for additional documents
2. Understand Different Small Business Funding Options
Traditional Bank Loans: These loans usually provide a fixed amount that the borrower must pay back in monthly increments. The most common loan for an existing business is a line of credit, in which the borrower has access to funds from the lender. These loans have lower interest rates than non-traditional but require higher credit scores.
Revolving Lines of Credit: A revolving line of credit allows a borrower to borrow up to the credit limit like a regular line of credit, but the key difference is, the credit limit returns or revolves back to its original amount once a borrower pays back borrowed money. A credit card is the most common form, but credit cards are advisable for only small purchases. Other forms of revolving credit will be better options for large needs.
SBA Loan: These are loans from the federal agency the Small Business Administration. The SBA doesn’t directly issue loans but minimizes the risk to private lenders who administer them.
There are many more business financing options that ROK Financial can connect you with. Please view our full list of business financing options.
With your research complete, and information and documents in hand, a small business can take the steps needed to keep it going during this time of uncertainty. Business experts advise to not wait until the aid is desperately needed. Applying and being approved will provide access to what may be vital funding.
Still not sure which small business loan works for you? Complete a 1-minute application with ROK Financial and speak with a Business Financing Advisor.