Before applying for a term loan, you’ll need to have a well-thought-out business plan in place that outlines how you’ll use the money and how it will impact your business. You’ll also need to gather various documentation. Lending companies will run a credit check on the business and on the owners personally. So, ensure your credit scores are favorable before applying.
You can shop for small business loans by visiting nearby banks, contacting your local SBA office, reaching out to your city’s chamber of commerce, or searching online. There are many online lenders who will do the comparisons for you. This will make it simple to find a great match for your needs.
The application process will usually start with some paperwork requesting basic information about your company, how much money you need, and how you plan to spend it. After processing and a credit check, the lending company will follow up for more detailed information and additional paperwork. Once you receive approval on your application, it can take up to a month for the term loan to receive the funds. If you choose to work with an online lending company as opposed to a traditional bank, this process will be sped up significantly.
Long term business loans can be a great way to fund large investments that enable business growth. There are many options and different types of lending companies that specialize in these types of small business loans. So, with a little research and some patience throughout the application process, your business will be on its way to the next level.
Information lending companies will request:
- Employeed Identification Number
- Filing of legal structure
- Recent tax returns
- Business license
- P&L statements
- Balance sheets
- Business plan
See if you qualify for a term loan