The rigors and challenges of owning a small business can be intense at times. And when it comes to getting a business loan, it’s not uncommon for to see small business owners sometimes make mistakes which leads to their loan not getting approval.
To help avoid such problems, here are a few mistakes to look out for:
|1. A low credit score|
|While the threshold varies from one lender to another, it’s a good idea to make sure you have a good credit score before applying for a loan. And if you don’t, take steps to improve it.|
|2. Your business is too new|
|We know, sometimes you need a loan when starting a business. But oftentimes, certain loans require a business to already be established for a certain amount of time.|
|3. Missing collateral|
|Even with the SBA 504 Loan Program’s relatively low down payment requirement, there’s still a certain amount if collateral required to fulfill the loan. Be sure of the amount required before you submit the loan application.|
|4. Incomplete or inaccurate paperwork|
|This is definitely one of the most common reasons loan applications get rejected. Even if you meet all the qualifications and have everything in order, if there’s a mistake on your application, you won’t get the loan.|
At BFC we’re here to help you avoid these mistakes and get your business the funding it needs. To learn more, call us today at 1-800-SBA-REAL.