If after business hours, please call 888-880-5663 or use Secure Chat to reach our 24/7 customer service team. Apart from the necessary documents, you would also need to present at the bank all the SBA requirements such as the SBA loan application, a personal financial statement, a good business plan, 3 years of business financial statements, 3 years of federal business tax returns, information about all owners and detailed information on how the business would benefit from the loan.
Bank business loans may be helpful for starting up franchises ranging from two hundred and fifty thousand to a couple of million dollars, or existing corporations; the new business purchaser will require a credit worthiness rating of well over 600, a minimum deposit of one sixth of the total loan, and if possible some high-quality comprehension and former applicable experience with that kind of company.
Repaying capacity of the borrower also is of prime concern to the lenders in approving small business loans Lenders like to invest their money as small business loan preferably in a business that is earning enough or has potential to earn, so that the borrower returns back the loan in regular manner for very smaller loan, unsecured business loan can be availed at higher interest rate.
And, since repayment of this advance (loan) is based on future cash flow from your credit card paying customers, these lenders are not that concerned with your personal credit scores but more concerned about your business’s ability to keep getting those paying customers in the door (which is what you wanted – a business loan based on your business results and future potential and not your past credit mistakes).
In general, banks are more cautious with their money-especially when dealing with new business owners-than private investors or investment firms because banks have to keep in mind that they are lending money that belongs to their account holders, notes D&B Small Business Solutions In addition, banks are more likely to give out small loans (less than $200,000) than fund large ventures.