In the movie It’s a Wonderful Life, they portray the idea that you can walk up to a bank and, if you know the bank manager, you can get a loan. The reality is that those days are long gone. The qualifications for a business loan today are complex and confusing.
Depending on where you go, there are numerous qualifications for a business loan. Most involve collateral, credit scores and tons of paperwork. It’s important to know where you stand financially to make the decisions that are right for your business.
All You Need to Know about the Qualifications for a Business Loan
If you are looking for a business start up loan they just don’t exist. That is, unless you use all your personal assets and collateral to back up the small business loan.
In addition to collateral, traditional banks expect you to have an exceptional credit score. Most use your FICO score to determine decisions for a quick business loan. This score encompasses your payment history, how much you currently owe, how long you’ve had credit, the types of credit you have and any recent credit inquiries.
Lenders will also look at your revenue, cash flow and amount of time in business. You will have to provide tons of paperwork to prove these numbers. This includes financial statements, your business plan, and several years’ worth of tax documents.
Are There Alternatives to a Business Loan?
Luckily, today alternative lenders have picked up the slack. If you have at least $150,000 in yearly sales, companies like Financing Solutions (www.financingsolutionsnow.com) will provide you with either a cash advance or a line of credit.
At Financing Solutions, they look beyond the numbers to get a true picture of your business. Even if you have poor credit, you may still qualify for instant business funding.
Most importantly, their process is fast and easy. You could have the quick business funding in your account the same day you apply.
What Are the Qualifications for Business Growth?
Whether you are a small business with 50 employees or 500, your ultimate goal is to grow. Of course, this is easier said than done. It may help to learn some of the qualifications for business growth.
One thing you must do is honestly assess your current challenges. For instance, do you need a serious upgrade of your computer systems or hire second-level managers? You should look at factors such as the complexity of your product line, your number of locations and how you are adding value. Knowing the obstacles you face will help to correctly diagnose problems and find matching solutions.
Management dynamics are also vital. You have to look at your organizational structure, management style and how much you are involved in day-to-day operations. It’s crucial that these aspects support your overall strategic goals. For example, you can’t say you want to build an organization that is seamless but have everyone working in their own individual silos. You also can’t implement a system that pits directors against each other. Your business will go nowhere.
The most important part of growth is getting a handle on revenues and expenses. With fast business funding from Financing Solutions, you will be well on your way to advancement and success.