How to Get a Business Loan in 5 Steps

Do you have tried to get a small business loan from your bank or the Small Business Administration (SBA) and they turned you down? Probably you don’t have enough assets, credit, personal assets, liquid assets, the right type of business, etc. Where do you generally go when you require money to expand, advertise, or buy equipment or inventory?

What’s great about change is that it can close the doors you are used to, but it opens other doors of chance that can be even better than the old tried. If the credit market contracts, that doesn’t mean the cash is away. Though banks may not be the source they once were, several other lenders are stepping in to fill the gap, as they make money when they lend and they don’t have similar limitations that actually apply to traditional banks.

Here are the top 5 steps to consider when trying to obtain a business loan:

1# Keep Track of the Reasons Why You Have Been Rejected

Don’t be afraid to discuss the reasons why you have been turned down. This is really valuable as well as time-saving info. You should always ask your borrowers where they have applied before and what the certain reasons for the rejection were. In this way, you can quickly evaluate other strategies and ask the borrower questions that will guide you to the correct solution.

2# Be Willing to Brainstorm with Your Broker or Lender

Whether things are not what you thinking, ask what other options there might be. If they know of anyone else who might be able to help, don’t be afraid to ask.

3# Take Stock of Your Other Assets

There are lenders who lend against many different kinds of assets, such as business accounts, marketable securities, future cash flow, financial instruments, insurance settlements, real estate, and factoring accounts receivable. For some of these choices, your credit and business history will not be a reason for succeeding in a business loan. Read more!

4# Venture Capital

Venture Capital could be the ideal choice for you and your business, in particular if you expand or just startup. Sometimes angel investors are available for the precise start-up that they like, though Venture Capital partners are interested in conditions that share and mitigate risk with the correct business reward.

5# Reduce Costs Where It Makes Sense

You would really rather focus on having the cash on hand, but think about how much it would assist reduce costs simply by switching service providers or consolidating more services under one roof.

Whether you are already factoring, take a simple look at other service providers that may have better service and lower rates. When you have an import-export business, you have to compare currency exchange rates with some startups as well as know how much you can save there. Equipment leases are one more competitive area where you can save money.


In general, it is vital to be honest, creative, and flexible when looking for new avenues of business loans. Keep looking for new ways to the network so that others know about your business, your progression, your capital needs, and your contribution to other businesses and other people. Learning new ways to look for Small Business Loan can be rewarding in many more ways than simply the dollars it offers. You can know more at

8 Options for Small Business Start-Up Loans

Business finance confuses most – and with good reason – it’s especially tricky when you’re just trying to start your business up. Unfortunately, most new businesses need help with finance and that usually comes in the form of a small business start-up loan. These loans help get a business off the ground or at least help buy the most important things, such as supplies, vital equipment, and machinery. So, what funding options are available, and which is right for you?

Top Small Business Start-Up Loan Options to Consider

  1. A Business Credit Card
  2. Equipment Loans
  3. An SBA Loan
  4. Non-Profit Microlenders
  5. A Microloan from the SBA
  6. Crowdfunding
  7. Invoice Financing
  8. Funding from Family and Personal Sources

Start-up business loans do come in many forms and can be extremely useful if you have a lack of funds available. Fortunately, there are a host of finance options. The above are just a handful of loan options to consider but there are many more.

Create A Crowdfunding Portal for Raising Capital

A lot of people donate money on crowdfunding pages simply because they believe it’s a good cause. It can be a smart idea to look into crowdfunding as there are thousands interested in investing (a small amount) in new business ventures. However, this is more of a donation rather than an investment as those giving money through crowdfunding don’t receive any money back or a stake in the business. This is a great business finance option to consider and can be useful at raising capital; just ensure you lay out the reason for asking for donations. Check here!

Instead of Business Loans, opt for a Business Credit Card

While business finance comes in many forms, one of the most popular choices is the business credit card. Of course, this isn’t suitable for every start-up but can be a useful option, nonetheless. However, there will be a limit on the amount of credit you can put on the card, so you must watch your spending as it needs to be paid back. A credit card may also come with a higher interest rate, so you need to investigate the ups and downs of the card.

Funding from Family and Personal Resources

While traditional finance options remain open to you, there are lots of simpler forms of funding available. One of the top options remain personal resources. This is especially useful if you have personal funds, such as savings, available. Of course, you have to use this money wisely and have a business plan so that you don’t waste the money. You could also look at asking for a personal loan from family members or friends. Most people don’t request interest on personal business loans to friends, of course, this will depend on your contract.

Choose a Loan Wisely

Start-up loans are important for most new businesses. Unfortunately, many business owners don’t think about finance before they launch theirs and that’s a mistake. You need to know what finances available so that you can take the best step for your business. Start-up loans are useful and can be used in many ways. Choosing the right business finance option is crucial, so look at all avenues before you decide which is best. For more details read our article:

What do banks look at for loans?

Small business owners usually do not turn to banks when seeking for loans. Maybe because they do not know what it entails. There are so many reasons entrepreneurs may decide to apply for bank loans.

Some of the reasons may include; business expansion, small business and a myriad of other reasons which are taken into due considerations by banks. But the question, how do you convince a bank to give you a loan for business/personal needs arises and immediately people are crippled with fear.

The truth is, getting business loans from the bank is not usually an easy task, especially for small business owners. In this post we’ll give details of what a typical bank will expect from a loan applicant.

Here are common requirements that are customarily asked for by most banks.

·        Purpose of the Loan

As opposed to regular money lenders, the purpose for the loan is very important to banks. The purpose for soliciting for bank loans should be written in details. It gives the bank a sense of security and they don’t feel blindsided.

To gain their trust, make sure your loan purpose is clearly written and is comprehensible. If the bank cannot understand the purpose of loan, your application maybe seen as sketchy. Hence, depriving your application of their approval.

·        Credit history

Typically, banks would want to review both the credit history of you as an individual, and that of your business. Banks want to know that you are prudent with funds and that is why they request for personal credit history.

Before submitting credit history to your bank, ensure that you have personally reviewed it. In reviewing it, you find mistakes and make corrections. This put you steps ahead of whoever reviews your credit history. Check here!

·        Cash flow history

This is required by banks to check the amount of money coming into a business and the amount of money going out. Positive cash flow increases your chances of qualify for a bank loan.

Banks need your cash flow to make financial projections for your business. They want to be sure that when it is time to repay the loan, you would be able. If they find your cash flow history lacking, you are less likely to qualify for the loan.

·        Collateral available to secure loan

Collaterals are an additional form of security for banks. Collateral ensures that a bank will be repaid in full in case of a business default. Collaterals are usually an equivalent of the amount borrowed. Collaterals guarantees that the loan will be paid.

·        Character

Are you honest and financially prudent? The answer to this question will go a long way in speaking for you when applying for a business loan. Character allows the bank to make a more subjective assessment of your business’s success and the business agility of you and your partner.

In this light, they consider individual factors that represent strength and weakness for a loan.

Small business owner should no longer be terrified of getting loans from banks. Although the prerequisite for acquiring bank loans might seem formidable, with careful planning and adherence to the tips above you may be able to successfully receive financing. Click here for more information:


Business loans are the best kind of assistance for small businesses and new business venture. There is no telling the amount of support that the acquired business loan would render to the business.

  1. That is why most businesses tend to opt for them. But what happens when you have no credit score? What happens when you are surrounded with lenders that needs credit? How do you convince them that you can pay?
  2. Here’s the good news, just because you have no credit doesn’t mean you can’t get financing. I must say that it is very challenging but that shouldn’t stop you from trying. While it is nearly impossible, there are ways to convince lenders/banks to give you that business loan that you seek.

In this article, we review some of those ways that will help you plot out ways to secure loans without credit. Also check out more information about business loans on

Convincing business plan

A well written business plan will go a long way in convincing banks and lenders that you are worth their money. Lenders want to know that you have a sustainable business and your business plan should be able to give them that.

Your business plan should contain your financial projections, what products and services you offer and what the industry is like. A well written business plan should be able to coax and apprise lenders of the perks of your business.

Obtain secured loan

 A secured loan is one that involves a potential collateral. With a potential collateral the lender is sure that in case of any default on your part, they are protected. This will increase your chances in securing a loan even without credit. Collaterals that are valued at a high amount even puts you at advantage.

So much so that lenders may be willing to give you larger amounts because they are sure that they will get their money back.


Creditworthy cosigner

Why do you need a partner? Partners are important especially in cases where you do not have a good personal credit score. A partner that has a good credit score and is willing to be a cosigner will put you at an advantage of securing loan. This gives the lender a sense of security; in the sense that the cosigner takes on some of the risks of the loan.

Traditional lenders that accept no credit history

There are a lot of traditional lenders out there that are willing to give out loans to small businesses without credit, learn more about traditional lenders. Usually these traditional lenders employ a system and have requirements asides credit history to evaluate your business. If after thorough evaluation, they are then your loan request may be approved.

Make payments on time

An entrepreneur has a chance of securing business loans if they are not in debts and always try to pay off expenditures on time.

Before applying for any business loan revisit your business plan and make sure it is up to par. The door is not completely closed to entrepreneurs with no credit. You just have to find one that suites your needs. Business loans are available to those who seek them out, so seek!


Business loan requirements among lenders mostly differ. One common requirement among lenders is a good credit score. Your personal and business credit score can break or make your chances at qualifying for a business loan. Most lenders expects entrepreneurs to have a minimum credit score before their business loan request can be approved.

Although, there are some lenders that do not restrict their lending options, one must still always aim at having a good credit score. So, how can you know if you have the required credit score?

You know this first by self financial evaluation, by looking inward and asking, is my business financially healthy? The answer to that question might be what you need. In this article, we will aim at exploring the issues concerning credit score eligibility for business loan.

Is there a minimum credit score for business loan eligibility?

There is no collective minimum credit score among lenders. Every lender with their own requirements. But most lenders will consider businesses with a credit score of 50 at a bare minimum and a stellar credit score of 80 and above as most ideal. Get more about small business loans on

These scores varies among lenders as I’ve said before. With a potential collateral in place, a credit score below the lender’s minimum score might also be considered.


What’s a good credit score for a business loan?

Usually, the credit score required for a business depends solely on the lender and the type of loan you want to apply for. Although, minimum credit score can vary depending on purpose, financials and a myriad of other reasons, this is what you can expect when looking to apply for business loans;

  • For banks: On average, a minimum of 680 is required but 700 is the most ideal.
  • Small Business Administration (SBA): It varies by loan program but a minimum of 620-680 is required.
  • Regular lenders: they require a lesser credit score or no credit score depending on the lender.

Which is more important, business or personal score?

Firstly, you should have it in mind that personal and business credit scores are two different things. They use different scoring system. While personal credit score evaluates your credit worthiness and willingness to pay back a debt, your business credit score evaluates your business’s ability to meet its own financial obligation.Click here to know how your credit rating can help you negotiate deals.

Depending on the type of loan you are applying for, most lenders would want to evaluate both. Having a high score in both increases your chances of getting your loan application approved. They are both important, but most lenders tend to put personal credit score above business credit score.

The importance of a good credit score in the acquisition of a business loan cannot be overemphasized. It is with your credit score that these lenders are able to entrust their money in your money. Business finance always requires a loan assistance especially at the beginning of the business venture. So, having a credit score that establishes trust between you and the lender is imminent.


Small business loans have proven to be the most difficult type of loans to acquire. Most lenders are scared to give out loans to small businesses for fear that it might collapse. Many loan requirements are alike for most lenders and banks the application process.

  • Lenders want to know that they can trust you with their money since they are at a high risk of loss if things go south.
  • Qualifying for a small business loan is easier when you are prepared. Even if you end up applying for an SBA loan through a bank or opt for loans from a traditional online lender, you should be familiar with their requirements.

Going in blindly is very bad as you might be surprised by their actual needs. Here are five things that are needed to help you qualify for a small business loan. To get a business loan with no credit click here.

· Personal and business credit score

Lenders request for personal credit scores because it evaluates your willingness to handle your personal credit obligations. Nevertheless, in addition to having a good personal credit score, building a strong business credit score is also paramount.

Your personal and business credit score is important in assuring the lenders that your business is credit worthy of the loan. Most lenders greatly consider your credit score in the decision making process of your loan application.


· Annual revenue

How much revenue do you need to secure a loan? And the answer you might expect is “it depends on the lender.” Your annual revenue is a reflection of the total income made by sales and services in a given business year before cost and expenditures are taken out. It gives the lender an idea of your ability to repay the loans. It also assists them in making financial projections for your business. If it meets their criteria, your application should be approved.

· Collateral

Collaterals are a form of security for lenders, since they are at higher risk. Traditional lenders, banks and credit unions use collaterals as a sort of backup plan in case there is any backtrack in your business finance.

Collateral is important especially in cases where you have little or no credit score. It is another form of reassurance for lenders. It also increases your chances of receiving the loan.

· Eligible industry

Industries defer in terms of business financing ease. Some industries are easier to fund than others. Most lenders prefer offering loans to only a specific number of loans. Small business owners should review the restricted list online before applying for loans.Learn more minimal qualification requirements for many business loans.

Lenders usually weigh their options before approving loans. They do so by checking the competitiveness of the industry and also if you are willing to be a competitor.

Small business owners should be aware that any financial documentation submitted for business loan purposes reflects their business in its entirety. That is why adhering to the requirements in this article is paramount. If you can make enquiries before writing a loan application, you can be sure to get your loan approved.