Whether you’re launching a new startup or taking your business to the next level, a small business loan can provide the capital needed to achieve your dreams. However, the application process is more complex than just receiving the money. It requires extensive paperwork, business plans, and a detailed accounting of how you intend to use the money. Below are a few tips for navigating the process and getting the financing you need.

How to Improve Your Chances for Getting a Small Business Loan

1. Check Your Credit Score

Even if you’re applying under your business name, the lender will check your credit score to ensure you’re financially responsible. Before sending in the application, get a free copy of your credit score and check it carefully for errors, such as paid-off accounts marked as delinquent and debts that don’t belong to you. If you already run an established business, check its credit rating with Experian®, Equifax®, or Dun and Bradstreet®.

2. Know the Lender’s Minimum Requirements

Each lender has minimum income and value requirements, which can vary from one loan product to the next. Be prepared to prove that you meet the minimum standards, or that the business projections show you’ll be able to pay off the loan. This step often requires preparing a profit-loss statement, detailed revenue projections, and other documentation.

3. Develop a Business Plan

Whether your company is brand new or has been operating for years, lenders will want to see a comprehensive business plan before issuing a loan. The business plan should show that you understand the market in which you’ll be working, and that you’ll have the revenue to cover the operating expenses as well as the regular loan payments.

For more than 80 years, businesses throughout the River Valley have relied on First State Bank in Russellville, AR, for the financing they need to thrive. As a local bank, they make all of their decisions in-house, giving them the ability to process applications quickly and offer the fairest interest rates available. Visit their website for more on their business loan services, follow their Twitter for more financial tips, or call (479) 498-2400 with any questions.