At some point, you’ll likely want to secure funding to achieve your business goals. An SBA loan is a desirable option since the terms are more favorable to borrowers than traditional credit. One deterrent for some folks is the time it takes to get approved. Here are some pointers to help you receive a quicker response after you apply.
A general requirement for success in any endeavor is to have those proverbial ducks in a row. Underwriters need to see personal and business documents that verify your trustworthiness. These include but are not limited to balance sheets, cash flow statements, personal financial statements, and income statements.
Additionally, a statement of purpose for the money and your business plan will be expected. Have this documentation ready before starting your loan request. Not only will you prove your ability to repay the debt, but you’ll also have some great guidelines to keep your company on track.
Understand the Different Types of Loans Offered
An SBA loan is not a one-size-fits-all solution. Various categories exist to fill different needs. The six main types are as follows:
- SBA Microloans
- SBA Export Loans
- SBA Disaster Loans
- SBA 504 Loans
- SBA CAPLines
- SBA 7(a) Loans
Each of these items serves a distinct purpose. Recognize that the wait time to get a notice that you qualify can vary considerably. Do your due diligence and determine which particular one is right for you.
On the matter of speed, Express loans are available. This option sounds appealing on its face. However, you’ll probably face higher interest rates. Also, consider that the funds available for this service have a lower cap than with other provisions. If the fees or the limitations seem prohibitive, you may be better off avoiding the Express process.
Ask for Help
It’s wise to have at least two pairs of eyes on a vital matter. A trusted friend, family member, or colleague who has experience in this area can be invaluable, so give them a call for advice.
You’ll receive pertinent communication more expediently by submitting your paperwork electronically. Don’t forget that there are tools and services capable of guiding you. Fortunately, you can find assistance from an online banking network. They can help you calculate approval odds and simplify the steps for application.
Your business deserves every advantage you can give it. An SBA loan could be the shot in the arm needed to get to the next level. Proper preparation, a little self-education, and the right assistance can help you speed up the process.