Getting turned down for a loan is never easy, and the application process can get strenuous and stressful. However, if you have been rejected for one, there is no need to despair. There are many things that you can do to increase your chances of getting financing. However, you have to be realistic, and actually be prepared to do the leg work if you want to make yourself more attractive to lenders. You might also want to reconsider some of the traditional options. Let’s take a look at how a Staff Agency business financing service can increase your chances of getting a business loan.
Improve Your Personal Credit
There’s no way around it. If you really want to increase your chances of getting a loan, then you’ll have to find a way to improve your personal credit. This is especially true if your business didn’t have time to build some credit history on its own.
The very first thing you need to do is order a free copy of your credit report. You are entitled to a free copy of your credit report from the three principal credit agencies: Equifax, Experian, and TransUnion. Once you’ve done that, you can look over the entries, see if there are mistakes, and have them corrected if there are any.
You then need to both work out a deal with your creditors and make sure that they commit in writing that repayments will be reported. You also have to show your creditworthiness by getting more credit.
That’s right, opening an account and using it responsibly is one of the best ways to rebuild your credit. And if you can’t access a credit card, one of the easiest ways to do so is to get a secured one. These cards will require that you make a deposit that will serve as collateral and it will be your card’s limit. All information will be relayed to credit bureaus, which will show activity and creditworthiness.
Consider Alternative Lenders
It’s no secret that big institutions are not very fond of small business owners. However, there are plenty of alternative options that you could go for.
For instance, credit unions are usually more open to small businesses. Even PayPal has a loan service that takes into consideration the activity in your account to gauge creditworthiness. There are also tons of alternative lenders that will privilege things like cash flow and other financials when approving business loans. So, make sure that you look at these options, and make sure that you have your paperwork in order if you want to increase your chances.
Boost Your Growth
As a rule, bankers like to work with businesses who can show steady growth. So, try to aim at around 10% growth annually if you want to make yourself more attractive to lenders. Lenders want to finance growth, not help businesses simply stay afloat.
Conclusion
Getting financing as a growing business can be a challenge, but it’s possible. Make sure that you take the steps necessary to position yourself as a prime candidate and start turning your finances around today if you haven’t already.
