Small Business Loans
More credit unions today are getting into the business of issuing small business loans. If you are considering applying for a small business loan, you’ll want to do a little research ahead of time and have your documentation ready. First, your personal credit history is relevant to your small business loan – especially if your business does not have a long operating history. Small business lenders will assume that you operate your business in the same manner that you manage your personal finances. It’s a good idea to have your credit history on hand when sitting down to talk to a credit union (or other lender) about a small business loan.
Secondly, you’ll want to bring any financial statements you have for your business. It’s important for the lender to understand how much the business is worth and profitability level/potential. You might also prepare detailed pro-forma statements which offer projections about what your business will be worth moving forward.
Lastly, make sure you have a copy of an up to date business plan. A detailed business plan will give the lender an idea of your operational and financial strategies.
Credit unions are great alternatives to banks or other lenders for small business loans because they are smaller and often grant you the opportunity to discuss your specific request with higher-level decision makers. Larger financial institutions also often have more strict rules and processes associated with these types of loans.
For additional information on loans or other resources/tools for your small business, you might visit the U.S. Small Business Administration’s website.
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