It would seem that being in the modern tech age would be an easy process to get a business loan approved faster than in the past.
However, it’s a fact that 95% of people that begin the application for a business loan do not finish because the process and paperwork are overwhelming. Further, a study has shown that one in six SBA loans fails.
How can that be?
The trick to speed up a business loan application is to submit a fabulous and complete loan package that will get you noticed. The intent of the lender is not to do your work to receive the funding. Your banker wants you to stick with the process because the result is worthwhile for both parties.
At the minimum, you must provide everything the bank asks for in the submission. As a bonus, you should also form and maintain a long-term personal relationship with your banker.
Prepare complete and thorough information.
Besides the application forms and collateral, be prepared to provide:
- Financial projections with detailed points of view
- An analysis of the competition
- Demographic research
- Profile of customer and target market
- Your revenue business model
- A careful review of your product. (How it’s made and its profitability)
- Sketches or images or your location (if a brick and mortar business)
In other words, the lender needs to understand your business and grasp how you are building your business. They will want a thorough understanding of how you will repay the loan.
It would be best if you prepare well to meet and present your company with pride and professionalism. As the owner, you are promoting and selling your organization’s benefits to make it easy for the bank to partner with you.
Most businesses today reach out to an outside party for business funding. A well thought out loan package avoids the lender needing additional materials to make the decision. Take the time to provide your loan package with care to maintain priority in the approval process. Being thorough will help you get your business loan approved faster and manage your business momentum and growth.