If you’re ready to grow your business but need a financial boost, a small business loan can be a powerful tool to help you reach your goals. Whether you’re launching a new service, hiring staff, or expanding your space, here’s a quick guide on how to get started.
1. Know What You Need (And Why)
Before applying, define how much you need and what the funds will be used for. Lenders want to see a clear plan—so whether it’s for inventory, equipment, or marketing (like a new website!), spell it out.
2. Check Your Credit
Both your personal and business credit scores can affect your approval odds. Review your reports for accuracy and fix any errors before applying.
3. Explore Loan Options
There’s more than one type of small business loan:
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SBA Loans – Backed by the U.S. Small Business Administration with favorable terms.
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Bank Loans – Traditional loans with low interest but stricter requirements.
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Online Lenders – Faster approvals, but often higher interest rates.
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Lines of Credit – Flexible funds you can draw on as needed.
4. Gather the Right Documents
Typically, lenders will ask for:
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Business plan
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Tax returns
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Financial statements (P&L, balance sheet)
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Legal documents (licenses, incorporation, etc.)
5. Apply and Follow Up
Once you’ve chosen the right loan option, apply through the lender’s website or in person. Keep communication open—they may need more info or clarification during the process.
