Get Your Business Funded: Creative Methods for Getting the Money You Need

The Application Process

Each bank has its own loan process, of course, but generally the application process can be divided into four steps:

1. Speaking with a bank officer in order to make a good first impression, and learning about loan options and eligibility requirements.

2. Filling out the application and providing all requested documents.

3. Waiting—for the bank to verify the documents, for it to analyze your credit, for underwriting, and so on.

4. Disbursement of funds.

The length of time it takes to gain approval necessarily depends upon the circumstances, size of the loan, type of loan, and the bank. It can be as short as a few days or as long as a few months. Somewhere in the middle is usually about right.

Lenders offer all sorts of business loans. These are the most common: startup loans, business growth financing, loans for inventory, vehicle financing, loans for equipment and tools, property loans, and trade financing.

Maybe you are wondering whether there is anything you can do as you begin this process to increase your chances of getting approved. The answer is yes. These things help:

• Cleaning up your personal and business credit reports. If you have outstanding debts, get them current. If there are mistakes on the reports, get them corrected.
• Having a good business track record. If your business has a history of being solvent and profitable, that of course is helpful. If not, handle business now.
• Having a good payment history. Showing the bank that your business ...