• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
Business Chew

Business Chew

Empower Your Business with Expert Advice and Tools

  • Business
    • Energy
    • Travel
  • Entrepreneurship
  • Finance
  • Lifestyle
  • Marketing
  • Strategy
  • Tech
Home » How difficult is it to get a small business loan?

How difficult is it to get a small business loan?

April 14, 2020 by Jeff Long

How difficult is it to get a small business loan?

In short – not really. Yes you have dot the i’s cross the t’s and make sure you have your shit together. But, as long as you have a well thought out and planned business your chances are pretty good. 

According to this report by the National Small Business Association, almost 75% of small businesses were able to access the funding they needed to grow.

Starting a small business takes capital, let’s be honest. All these stories about starting from a garage at home might make for good clickbait, but the reality is, the people who built the giants of online shopping or mobile phone technology will agree, that they had a funding source in one or another. You could strike lucky and find you are able to self-fund and grow your own business on a shoestring budget, but you want to aim high and start off on the right foot from day one.

Applying for a small business loan requires you to get straight to the point, having prepared yourself beforehand. Sure you know your industry inside and out but can you prove to someone else you are worth taking a risk on? This is where you need to talk the talk as well as walk the walk.

What Factors make it difficult to get a small business loan?

Credit history for small business loan

Your Credit History

In an ideal world, you will have a more than stellar credit rating and will be able to boast a trust that will make even the most strict lenders bend over backwards to help you. Is this you? Finding lines of credit when it comes to small business loans can be complicated if you carry a bad line of credit, thanks to defaults.

Do some digging and get that credit rating higher if you have some indiscretions floating about. Prove you are able to manage your own personal credit before borrowing on the back of a new business. Overextending yourself with some complicated financial gymnastics could lead to you crashing out in the first round and acquiring some pretty hefty monetary injuries that could follow you around for the rest of your life!

Business plan for small business loan

Business Plan

You may not know where tomorrow is taking you, but knowing where your new business is heading and how it is getting there is just as important when it comes to applying for a small business loan. The devil is in the detail with this one, and you want to show not only where you want to go but the road you will take to realize your dream.

profit for small business loan

Projected Profits

“Show me the money” In the immortal words of Tom Cruise, your prospective lenders will want you quite literally to show them where the money is. There isn’t any lender who will part with hard-earned cash to back a loss. You need to prove that there is a market for your business and how you intend to make money and keep developing your business to meet market demands.

Crunch Time

Once your research is signed and sealed, you will need to deliver. Find the right lender for you by working with SCORE volunteer counsellors, Small Business Centre or the Small Business Association to make sure you are applying for the right loan for you.

Once your application is ready, you then need to find and meet with the lender to secure your funding and start your journey to becoming a brand spanking new business owner.

Filed Under: Business, Entrepreneurship, Finance

About Jeff Long

Jeff Long is a Senior Editor at BusinessChew. He writes about trends in technology and business that impacting the world.

Primary Sidebar

Get the Weekly Chew

One email a week to give you the top 5 news stories you missed.

Trending Now

  • Cheap Franchises to Start
    6 of the Best Cheap Franchises Under $1,000
  • Shelf Corporations: A Complete Guide
  • Easy Business Ideas 2021
    7 Business Ideas for 2021
  • These Industries Are Now Booming Because of COVID-19
  • Operations Support Engineer
    What Is An Operations Support Engineer’s Job Description?

Helpful Links

Footer

Trending Articles

  • 6 of the Best Cheap Franchises Under $1,000
  • These Industries Are Now Booming Because of COVID-19
  • 7 Business Ideas for 2021
  • Shelf Corporations: A Complete Guide
  • Telehealth for Pets? COVID-19 Pushes Bold Innovation
  • What Is An Operations Support Engineer’s Job Description?
  • What Is Website Taxonomy or URL Taxonomy in SEO?
  • Cheapest Recession-Proof Businesses
  • How to Support a Friend’s Small Business

Recent Articles

  • Shelf Corporations: A Complete Guide
  • How to Support a Friend’s Small Business
  • The Best CMS for Small Business
  • 7 Business Ideas for 2021
  • 6 of the Best Cheap Franchises Under $1,000

Search

Information

About Us

Contact Us

news@businesschew.com

Copyright © 2021 · BusinessChew.com · Website by Panther City Digital