Tips when Applying for Business Loan

Are you thinking about applying for a loan for your business?  

If you are, there are a few things you’ll have to do before calling up your bank, such as:

 Gathering up your financial + legal documents

 Checking (and maybe improving) your credit score

️ And even writing up a detailed business plan

Know what else you got to do? 

Get your business bookkeeping up to date and in order 

Here’s why:

 LOAN AMOUNT: Without up-to-date finances, you can’t know exactly how much you need (or what monthly payments you can afford!)

 REPAYMENT AMOUNT: Not only that, but you’ll also have to prove to the bank that you can actually AFFORD that monthly repayment amount

 INTEREST RATE: Want to make sure you get the best possible rate on a loan? One of the best ways to help improve your odds is to provide clean up-to-date financial records

 BUSINESS PLAN: And that detailed business plan you need to write?  You’ll need to back it up with up-to-date financial reports from (you guessed it) up-to-date bookkeeping

This means that, if you need to apply for a loan – and your business bookkeeping is a little (or a lot) behind – it’s time to start catching up

 Open up your spreadsheets or QuickBooks account

 Gather up all your bank and credit card statements

 And get to work!

Depending on how far behind you are, and how many documents you’re missing, it may take days – or even WEEKS! – to catch up, so the time to start is now 

(That’s why I also included a link to a helpful article below  it lays out EXACTLY what you need to do before applying for a business loan, step by step.  I hope it helps!)

https://www.nerdwallet.com/article/small-business/how-to-get-a-small-business-loan

What about you?  Did you know that your business bookkeeping could have such a big effect on your loan application process? I’d love to hear your thoughts!

Or maybe right now you’re thinking, “I don’t need an ARTICLE – I’m way behind and I need someone who can catch me up FAST.”

If that’s you, then we’re the right team for the job! 

We’ve helped multiple clients get prepped quickly for their loan application process in their business (and get better deals as a result) and we’d love to help you do the same!  Just reach out

Abacus Business Solutions at info@chooseabacus.com or (352) 432-8104