Business loans can provide you with the money you need to purchase equipment or inventory to finance business expansion, pay employees and cover other expenses. Before you apply, be sure you understand how these loans operate and what paperwork you will need to provide to your lender. Be aware of the time required to submit an application as well as any fees you might be assessed.
Common uses of business loans
A business loan may aid in the payment of https://southbeachcapitaladvance.com/dri-avast-software-refund-process unexpected expenses like the damage to your workplace chair or the COVID-19 Pandemic. You may also require borrowing money to pay for an unavoidable capital expenditure, like replacing or upgrading technology, buying manufacturing equipment or renovating a retail store. Some lenders offer credit lines that permit you to draw money as needed. The maximum amount is fixed and interest is charged only on the amount you draw.
Eligibility requirements and application process
You’ll be required to provide specific information about your company, such as the official name of your company, its tax ID number and any financial documents. This could include business plans, proposals, statements of profit and loss and the names and Social Security Numbers of those who are owners of 20 to 25 percent or more of your company. Some lenders require that you have been in business for at least one year. Others are open to startups, or do not have deadlines.
A mentor or adviser can guide you through the process of getting a business loan. SCORE for instance, has a network of business mentors who provide free or low-cost assistance to startup founders and small businesses. You can locate a local chapter and talk to an advisor in person.
