Business Financing: What Your Lender Needs to See from You
Business financing comes in all shapes and sizes, ranging from conventional loans to cash advances, working capital solutions, and even large project financing. Yet in all cases, your lender will need some information in order to approve your request and tailor the funding to help you reach your goals. Before talking with your lender about business financing, it is a good idea to have the following items ready and available.
A Detailed Business Plan
Even the most innovative startups need to have a business plan. Pitching ideas to your lender only demonstrates that you haven’t thought everything through properly. A lender needs to see a business plan with details about your direct competition, budgets, forecasts, projections and more. The more details you can provide in your business plan, the more confident a lender will be about approving financing for your business. Business plans are usually required for business financing programs such as SBA loans and similar debt financing.
Some, but not all, business financing programs require that organizations meet specific minimum credit ratings. Lenders want to see detailed credit reports which include any outstanding liabilities or other red flags, as well as how you’ve done up to this point with paying off balances and debt. Business credit reports should be researched at least two months before meeting with your lender. Get a copy of your credit report and look for any red flags. Then take the time to remove any blemishes. Any changes to your credit report are not reflected until the following month, which is why we advise taking care of things well in advance.
From working capital to loans for growth projects, equipment, and more, your lender will want to see your financials. Sales, revenue, profits, overhead costs, and other categories help to determine the amount of business financing you will receive. Financials are more of an “at-a-glance” document, to see how your business has performed for a set period of time.
Get the Business Financing You Want
At Growth Lending Group, we offer a wide range of business financing programs to cover all of your needs. Whether you have launched a new startup, want to improve cash flow, need equipment, growth capital, or anything else, we’ve got you covered. Contact our offices today and talk to one of our experts to get the funding you need for long-term success.