Every bank or lender is different in the approaches they use to accept or deny loan requests. They may use a different system or software to evaluate the applications. However, there are standard factors lenders look at before accepting you as a client when you try to get a small business loan.

1. Request A Copy Of Your Business Credit Score And Business Credit Rating.

When you are trying to get a small business loan, request a copy of your business credit score. Lenders will look at your credit score and credit history before approving for you to get a small business loan. If you have a poor business credit score, provide a copy of your newly revised business plan with the application for the loan.

Also, if you have bad credit, you can look for specialized loans in that area. You should request your business credit score a few months in advanced, so you can work on bringing your credit score up if it is poor.

2. Show The Lender You Can Meet The Payment Obligations.

The most important thing lenders look for when they review your application to get a small business loan is your ability to pay back the loan and interest. They will review all the vendor contracts and reference lenders you supply in the application packet for a solid understanding of how you conduct business with other businesses. You want your business to look as if it has made payment to every vendor on time with no problems.

You may decide to highlight payment amounts on a large balance, such as an invoice from an office supply store you purchased 20 computers from. This will bring the eye of the lender directly to what you want them to see – your payments to the invoice balance. The relationships you build with vendors can be the aspect that gets you your loan. Always work in a professional manner with vendors.

3. Demonstrate The Investments You Have Made In Your Business.

Lenders want to see the hard work you have put into building and establishing a name for your business. Did you get a small business loan for your business previously? If so, provide a copy of you payment completion document, as well as pictures of supplies you used the funding for.

4. Show Off The Profits Your Business Has Produced.

As much as I hate to admit it, lenders like to know you are currently running a successful business when you try to get a small business loan. So, show the lender a breakdown of your profits and debts. Copy all contracts you have with other companies, and a copy of the business credit you have built for your business.

These are some of the most important factors lenders consider when you attempt to get a small business loan. You will increase your chances of being approved to get a small business loan by following the steps listed above. You need to show the lenders that you CAN and WILL make the payments on the loan.

Author Bio: Shawn Casey Provides Tips On Building Business Credit At His Blog http://www.businesscreditnow.org And Explains Business Lines Of Credit, Such As How To Get A Small Business Loan

Category: Finances
Keywords: get a small business loan,business credit,business loans