Tips when Applying for Business Loan

Are you thinking about applying for a loan for your business?Ā Ā
If you are, there are a few things youāll have to do before calling up your bank, such as:
Ā Gathering up your financial + legal documents
Ā Checking (and maybe improving) your credit score
ļø And even writing up a detailed business plan
Know what else you got to do?Ā
Get your business bookkeeping up to date and in orderĀ
Hereās why:
Ā LOAN AMOUNT: Without up-to-date finances, you canāt know exactly how much you need (or what monthly payments you can afford!)
Ā REPAYMENT AMOUNT: Not only that, but youāll also have to prove to the bank that you can actually AFFORD that monthly repayment amount
Ā 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
Ā BUSINESS PLAN: And that detailed business plan you need to write?Ā Youāll 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 ā and your business bookkeeping is a little (or a lot) behind ā itās time to start catching up
Ā Open up your spreadsheets or QuickBooks account
Ā Gather up all your bank and credit card statements
Ā And get to work!
Depending on how far behind you are, and how many documents youāre missing, it may take days ā or even WEEKS! ā to catch up, so the time to start is nowĀ
(Thatās why I also included a link to a helpful article belowĀ Ā it lays out EXACTLY what you need to do before applying for a business loan, step by step.Ā I hope it helps!)
https://www.nerdwallet.com/article/small-business/how-to-get-a-small-business-loan
What about you?Ā Did you know that your business bookkeeping could have such a big effect on your loan application process? Iād love to hear your thoughts!
Or maybe right now youāre thinking, āI donāt need an ARTICLE ā Iām way behind and I need someone who can catch me up FAST.ā
If thatās you, then weāre the right team for the job!Ā
Weāve helped multiple clients get prepped quickly for their loan application process in their business (and get better deals as a result) and weād love to help you do the same!Ā Just reach out
Abacus Business Solutions atĀ info@chooseabacus.comĀ or (352) 432-8104