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Whether you’re part of a team or a sole proprietor of a small business, securing a business loan can be one of the best moves for the company. The additional capital can provide the stability and reassurance needed to reach the next phase in your development. The exact requirements for obtaining a loan vary depending on the lender and the amount of the loan, but here’s what you need to know in general.

The Basics of Qualifying for a Business Loan

Operate for at Least a Year

For small businesses, the first few years of operation are often the most tumultuous, which is why many lenders are unlikely to offer any amount of money. However, some companies, like Kabbage, have more accessible terms for their business loans. Kabbage only requires that you’ve been in business for at least one year.

Build Solid Personal Creditbusiness loans

It may come as a surprise, but a business owner’s personal credit is one of the most critical factors. For lenders, a person’s credit score is a reliable indicator of how they’ll handle their loan since both involve debt repayment. The higher the score, the more likely you will get the requested amount at a low interest rate.

Have Sufficient Revenue

Finally, lenders want to know how much money the business is generating. If you’re asking for a loan, but your income rate isn’t high enough to repay it, lenders will be hesitant to approve the application. Exact numbers will differ based on the lender; as a ballpark, you should make at least $50,000 annually to qualify for a loan at Kabbage. Even so, if the company experienced steady growth for the past quarter and has made at least $4,200 every month, you’ll meet their qualifications.

 

Are you interested in applying for a business loan from Kabbage but still have some questions? Call P2 Business Solutions in Stamford, CT, at (203) 564-9016. Currently the only U.S. partner of Kabbage, they can walk you through the process to ensure you have everything necessary to secure the loan. Whether the goal is $1,000 or $250,000, this company has friendly and knowledgeable agents throughout the country who are ready to help. To learn more about their services, visit their website.

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