Digital Marketing Manager | Posted on | Share-Market-Finance
How do you get a business loan in the US?
Project Manager at The Economic Times | Posted on
Getting a loan for business is not as easy as it was before recession of 2008, but at the same time lenders will have to extend loans to keep them going. Fortunately, there’s been a resurgence in bank lending to small businesses. Large banks now approve a quarter of small business loan applications, and regional and community banks approve nearly one half of small business loan applications. In order to get a business loan in the US, you need to know the way. Here’s a step by step process:
1. Build a relationship with bank: People are inclined to work with companies they like and trust. Building relationship with key people will eventually help your company to get funds.
2. Identify your credit score: Lenders look at credit scores to judge the reliability of the borrower, Hence, it is important to know what lenders look for and how the scores compare to those expectations.
3. Find a best lender for you: Thereare broadly five kinds of lenders in the United States, vis Commercial banks, Non-bank lenders, Region specific lenders and Micro and alternative lenders
4. Create loan application: Prepare the loan application package. It should have business plan including business owners' resumes. Financial results and projections and personal financial information including three years of tax returns.
Key things a lender look for a borrower
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