Tag Archives: small business loan

A Commercial Address

You can expect to secure the maximum amount of credit available if you set up your business in a commercial office location.

A physical location that is zoned for business speaks volumes for your company and its operation.

When you apply for a loan there are certain things lenders look for to determine your business fundability. Banks always want to check if you are in compliance. Compliance basically means that you are doing everything in your power to make your business as credit worthy and prove your business fundability by complying with all aspects important to a lender. Everything in a lender’s list of requirements is geared to make sure your business has the ability, now or in theory, to repay a loan and the disposition to do so. A part of being compliant is geared toward proving your business actually exists and enjoys a good reputation as well.

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To present a solid appearance, your address should be an actual street address not just a P.O. Box, and you should have a listed phone number. It is better to have a landline telephone even if you use a cell phone for most of your communication, however if you use cell service exclusively make sure it is a contract phone that will have your business name associated.

The amount of credit your business will qualify for is determined by these types of factors including company size. If you use your home office as your business address it can limit the amount of credit your company can obtain. Creditors believe it is unlikely that you can run a major corporation out of your home office.
Whereas if you have a commercial address it puts your business in a different light compared to a home based business. You can expect to secure the maximum amount of credit available if you set up your business in a commercial office location.

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If you’re adamant about having a commercial address but renting office space is out of the question then you may want to consider renting a virtual office from Van Nuys Virtual Offices. Van Nuys Virtual Offices can provide you with all the benefits a traditional office gives you at a fraction of the cost.

Get Approved for a Small Business Loan

Launching a business requires capital. Even when a business is already up and running cash flow is important to keep things running smoothly and to allow expansion. Many businesses find there are enormous benefits from getting a small business loan.

There are a variety of financing programs that give emerging businesses the boost they need to expand and grow into a “bankable” enterprise that generates new jobs and strengthens the economy. Normally you have to have two to three years of solid financials before a money lender like a bank will even consider lending you money. Often you need to have a strong personal credit record to be eligible for a decent business loan from start-up.

There are other lenders that offer business loans specifically for start-ups so the process is easier now than it was a decade ago.

Such lenders can furnish you with a loan of the capital you require in order to get your business start-up running or to take your existing business to the next level. Getting approved for a business loan from a bank with a credit score of 650 or less can be extremely difficult. Before a lender approves your small business loan application, they will want to be certain that your business is capable of repaying the loan. This is why it’s so difficult for startups with unproven operating histories to obtain loans. In order for you to stand a chance in getting approved there are some steps you will need to take.

1. Check Your Credit History
It’s a good idea for business owners to check their credit histories before trying to get a loan. Correcting erroneous data or resolving any inconsistencies before applying for a loan will increase a business’s chances of getting one.

2. Research Potential Lending Institutions

Before you start applying for loans, you should gather some basic documentation about you and your business – such as a demonstrably good income record. The most important measure banks use in determining whether to loan money is the company’s ability to repay. Always try to approach a bank that is familiar with your industry and target market.

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3. Create a Cash Flow Statement

A cash flow statement is a familiar financial statement to the banker and provides the banker with an understanding for the current assets and liabilities of the company. Banks prefer more assets than liabilities. In order to create the projected cash flow statements, you will need a detailed business plan. This is also something a bank will want to see before they approve your loan. The plan should be part of your loan application. You should focus on the details within the plan that explain how you will use the loan proceeds.

4. Invest in the Business
Invest your own funds. Lenders like to see personal investment. It is a sign of commitment. Wait until you can afford to invest your own funds before requesting the help of a lender. In general, a lender will help you to subsidize your total funding need, but will be reluctant to provide you with the entire amount.

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