As an advocate for small to mid-size businesses (I am one) I give a word of caution when shopping for a loan. DO NOT shop 2 or 3 lending or credit institutions at once, every time you go they pull your credit and you get a “ding”.
- Do your homework, Google can save you time and energy and money, shop on line for lenders who favor your type of business, i.e. best lenders for restaurants, machine shop, start up, poor credit etc.
- Go to credit agencies where you can get a full and free credit report without “a ding”-like Credit karma (free).
- Once you obtain your report see what you need to correct or challenge on any information in the report.
- Have a game plan, why you need the money, how it will help grow your business, or start your business.
- Correct BEFORE you apply, or at least have a reasonable explanation.
- Find a lender who will initially accept the credit report you have provided to see if you can qualify with that lender.
- Many lenders will have an on-line see if you qualify without affecting your credit (we do), it helps give you the direction for your next steps.
Simple steps to help you obtain the financing necessary for your business…oh, and read the fine print before you sign.
Be Prepared-Be Informed- Be Pro Active