5 Things to Consider Before Applying for a Business Loan
There are an infinite number of reasons why businesses sometimes need a cash injection. It may be to fulfill a large order, expand your business, buy a new piece of equipment or move premises for example. It is notoriously difficult to get a loan for a small business, especially if it is a franchise or you have a less than perfect credit history.
Since it is difficult to secure a loan for a small business, you might be tempted to settle for anything that you can get. While you should be realistic, it doesn’t mean that you should just take any form of financing, especially if the rates are predatory as they often are for merchant cash advances.
There are number of things that you should think about when looking to get financing for your business and here are five of them:
Credit Rating – Check what your credit rating needs to be. There are now a number of business loans available to owners who don’t have a perfect credit rating. Instead, you simply must meet a minimum time in business requirement along with a certain monthly revenue target.
Collateral – Check what the policies on collateral are. You need to decide what kind of policy you want with regard to collateral. Loans typically supplied by ARF Financial, for example, don’t require collateral for amounts up to $725,000.
Terms – You should check how long the loan terms are and if they are fixed or variable. Think about the impact this could have on your repayment options, and what could happen if the terms were suddenly (yet legitimately) changed.
Timelines – You should consider how long it takes to get approval for a loan. You don’t want to be waiting around for weeks while those big orders and growth opportunities pass you by. Companies such as ARF Financial can have you approved and financed in 10 business days or less, meaning that you can grasp the opportunities as they come.
On-going Support – A responsible finance company will give you on-going business support once the loan has been delivered. They should be able to help you to plan, budget and make the most of your money, as well as cut out on unnecessary expenditure.
Making a loan decision is one that shouldn’t be taken lightly as it can affect you and your business for perhaps years to come. A company such as ARF Financial can help you make the right decision for your business and make sure you get the right loan for you.