says your chances of approval depend on the lender's requirements and how well you meet them, so applying with little to no preparation risks denial. Here’s how to set the process in motion.Colin Beresford, spokesperson with Forbes Advisor, says a business loan could be beneficial for many reasons, such as if you’re buying assets that will contribute to the long-term value of your company or if the only way to expand your business is with additional funds.
A"help wanted" sign is displayed in a window in Manhattan on July 28, 2022, in New York City. A small business loan can help cover the cost of hiring more staff. Lenders consider both personal credit scores and business credit scores to determine your ability to repay your loan.
You can also compare lending options to consider exactly what you need the financial help for, when you need it, and how likely it will be that you would meet strict requirements in order to narrow down your search, Beresford says. "As traditional banks tend to be stricter with the requirements, the best option would be to compare online lenders – this is also recommended if you need the funding quicker, as the turnaround can be slower with traditional banks," he says.