How to Apply for a Business Loan in 5 Steps
Applying for small business loans can seem daunting, but you can break the application process down into these simple steps.
1. Determine Your Need
It’s important to know what you’ll need the loan for, and exactly how much you’ll need.
2. Check Your Credit History and Score
This can help you focus your search to lenders that cater to businesses that fit your credit profile.
3. Review Your Options
Research the different types of business funding to see which options would be the best match for your business.
4. Prepare Your Paperwork
You should have a business plan, an executive summary, profit and loss statements, balance sheets, cash flow statements, and two years of tax returns.
5. Choose Lenders
Choose your lender carefully, and be sure not to submit too many applications at once. Just like personal credit, submitting several applications in a short amount of time can adversely affect your credit.
Business Loan Application
Now that you know how to apply for a business loan, you should review this checklist to ensure you have what you need for your loan applications.
- Reasons for the loan
- Business plan
- Credit report
- Tax returns
- Financial statements
- Accounts receivable
- Accounts payable
- Other legal documents
While many of these items are good to always have on hand, the reality is that sometimes compiling and updating such information can be time-consuming. Of course, all of the time spent on the application only adds to frustration and disappointment if you don’t end up receiving approval for a loan.
Apply for a Business Loan With Headway Capital
Headway Capital offers a revolving line of credit of up to $100,000. We pride ourselves on transparency and our financing comes with no extra costs or hidden fees. Once approved, you can borrow as much as you need (up to your credit limit), as many times as you need to, without having to reapply. Accessing your line of credit is easy; all you have to do is log in to your online account and request a draw! As you repay, you replenish your available credit, so you can keep your business running at full strength at all times.
Ready to apply? Applying with Headway Capital is designed to be quick and simple. Our online application doesn’t require the amount of in-depth information that many other business lenders require, and we’ll let you know the same day whether or not you are approved. If approved, you can request a draw immediately and receive funds as soon as the next business day.
1We always do a soft inquiry unless your credit file is restricted, in which case we would ask you to contact the credit bureau to lift the restriction. Doing so may result in a hard pull.