How To Qualify For a Business Loan


For getting started with your business, you need loan. You’ll find it difficult to get loan in the absence of a creditable business history. So, you need to employ other means to prove to the lender that you are the right candidate. Obtaining loan is a project by itself and a difficult one, but here are the steps towards executing that project:

Steps

1. Review your credit history on all three credit reporting agencies (Experian, TransUnion, and Equifax) to ensure your current records are truthful. If you find any flaw, get it rectified. Visit IRS gov to download Form SS-4 and apply for a business tax ID number.

How to Qualify for a Business Loan

2. Open a checking account with bank and deposit your personal funds in that account and connect the same to your newly acquired tax ID number. This goes to prove that you already have a cash reserve and are willing to risk your finances for your business.

3. Prepare a list of all your assets that demonstrate that these are enough to balance out most of the loan you are seeking. Gather your income tax returns for the last five years, showing income from various sources. Make sure to include assets that can be liquidated easily.

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2 Responses to "How To Qualify For a Business Loan"

  1. Good article and guide. I went to a bank last year and wanted to get a loan for my company. It was not as easy as I would have hoped, BUT the banker really helped me get things in order to secure the loan by months end.

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  2. Great guide to follow. I would say that as long as you have your financial paperwork in order and everything looks good on your statements, you should be able to get a loan.

    Reply

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