How to Improve Your Chances of Getting an SBA Loan

How to Improve Your Chances of Getting an SBA Loan

First Financial Starting a Business Leave a Comment

Getting an SBA loan can be very easy, slightly complicated or extremely difficult. Your experience will depend entirely on your SBA loan application. Any type of loan approval is dictated by the policies of the lender. In case of SBA loan, there are certain parameters or criteria set out by the Small Business Administration, which is a federal agency. The guidelines issued by the SBA are more or less followed by all banks, financial institutions, credit unions and other small lenders. If your SBA loan application can tick all the checkboxes, then loan approval will be easy, quick and almost surefire.

Here are some tips that can help you through an SBA loan approval process.

  • A business or a company must never lie to its bank or lender. Banks or lenders provide the much needed financial assistance and can often be the difference between staying afloat and going bankrupt. Hence, it is imperative that you provide as much information as you can. A business must be an open book for a bank to have greater chances of approval. Let us take an example of an instance when you need to procure a certain machine or some inventory and you are thus looking for an SBA loan. When you file your application, ensure that you put in the details of the machine or the inventory you need, include costs and quotes from suppliers or manufacturers, mention your options and get into as much detail as you can to discuss the needs of the machine or inventory, how it can help your business and how your company will generate more revenue and make money using that procurement. Detailing and more information are always appreciated by lenders and when they know how you intend to use the SBA loan and how you would make money, the loan approval process will be quicker and in your favor.
  • Always target more than one lender. Never have only two lenders in mind. Make a list of all potential lenders and think of targeting them all. Some lenders will not be ideal with their offerings, which you can discard. Also, look for local lenders as they are much easier to deal with and they will have some degree of interest in helping the local community or the businesses in a given region.
  • You must make use of SBA loan assistance. There are many SBA loan providers that have officers dedicated to offer counseling and even help with loan approval. Such professional expertise is always welcome and you get someone on the other side to be at your aide.

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