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Asking Lenders 5 Questions Before Applying For Small Business Loans

Some small business owners may be experts at generating results and increasing revenue but they might need help in other areas. You can request a small-business loan to meet a number of needs. You may want to renovate or increase your inventory. You may need more cash to fund a marketing campaign, or cover payroll.

Contact a lender if you believe your business would benefit from a small loan. They can explain the process. Before applying for Small Business Loans, here are five questions you should ask the lender:

1. How long will the loan process take?

Different lenders have different processes for loan applications, approvals, and funding. Applicants may be required to meet more stringent criteria by some lenders, which could slow down the process. Chron reports that the Small Business Administration loan process could take between 60 and 90 days. There are lenders that work faster. Alternative lenders speed up the application process and deliver funds in 24 hours. Working capital is essential for any business, regardless of the industry. QuickBridge only requires your last three bank statements to begin.

2. What do I need to qualify?

One of the questions you should ask your lender is if you qualify for a loan. You’ll be asked to provide some information when you apply for a loan. These data could be related to the revenue of your business, its risk level or financial history. Documents that you may be required to provide by lenders when applying for financing include

* Driver’s License
* Bank Statement
Tax Returns for Individuals and Businesses
Statement of Income
* Balance Sheet

It can be difficult to secure financing from a bank with an average approval rate of only 56%. Alternative lenders like QuickBridge provide working capital with no stringent requirements. Online loans are available to many individuals who have been rejected for a small-business loan by a traditional bank.

3. What is the maximum amount I am eligible for?

How much funding do you qualify for? This is the number one question to ask your lender. Make sure that you have enough capital to meet your business’s needs.

Depending on who you ask, the answer to your question about how much you can borrow may differ. You can borrow any amount from any lender. There is no minimum or maximum. Lenders will determine the amount of money you can borrow based on a number of factors, including your creditworthiness, financial stability and loan terms.

These factors can complicate the lending process. Working directly with your lender will allow you to determine how much money you are eligible for, based on what documentation you submit. Consider how much you will need to borrow and how much you can pay back.

4. What can I do with the funds?

You may already have a plan for how you want to use your small business loan.

Some lenders may restrict how you use the funding or require that you borrow more than what you need. QuickBridge’s precision short-term loan can be used to fund almost any type of business. You can use your small-business loan for the following purposes:

Business expansion
Stock financing
Marketing and advertising
* Business operations
Renovation finance
Tax debts for businesses
Payroll for Employees
* Equipment financing

Your business’s industry may influence how you use your funds. Work with a lender that understands the unique needs of your industry.

5. Does Early Payoff of the Loan Have a Penalty?

You should know if you’ll be penalized if you pay back your loan early. Some lenders may charge you a penalty if you pay off your debt before the loan term is up. Be wary of lenders that penalize early repayments. We at QuickBridge believe that early repayment of a loan should be rewarded. For this, we will offer incentives to our clients.

It may be overwhelming to apply for a loan. These questions can help you prepare for the process of obtaining a loan and decide if a lender is right for your business.

QuickBridge puts your business first. Our business loans are tailored to your specific needs and opportunities. We will make sure that you receive the correct amount and term so that you can reach your immediate goals. We have a simple application process and can deliver funds within 24 hours. Contact us today

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