Loans, Credit, & Financing
Equipment breaking, code violations, inclement weather…anything can happen when you run a business. Are you ready for anything? With a good business credit score, you can get the funding you need to survive a crisis.
Whether you already have a business or are considering forming a corporation or LLC, sooner or later you’ll need to borrow money.
Luckily, the credit experts at NCH are here to help! We’ll walk you through the process of qualifying for funding and get you started building a line of credit.
Factors to consider before applying for a business loan:
- Are you looking for a business line of credit for working capital and/or growth, or do you need to lease premises and/or equipment?
- Do you have 2 years of financials prior to setting up your corporation or LLC?
- Can you provide the following requirements: business summary, personal profile, loan proposal, business plan, loan repayment plan, supporting documentation?
- Are you equipped to identify the scams in today's market place that make unrealistic promises about business credit?
Your answer to these questions will determine which business loan or lease is right for you.
Finding the Best Business Loan or Lease
Without the proper credit profile, it can be extremely difficult to find someone willing to give your business a loan or lease. Before looking for financing, make sure you're prepared to present a good offer to a lender. Learn what it takes to obtain the loan or lease your business deserves.
Our NCH experts advise that you take the following steps:
Prepare You and Your Business
- Have a favorable PAYDEX score with D&B
- Have a favorable Intelliscore with Experian
- Have a favorable personal credit score (FICO)
- Have a minimum of 3 trade references
- Have a good bank reference
- Research the type of loan/lease you want
Put Together a Written Plan
- Prepare a business plan
- Prepare a marketing plan
- Have 2 years of financial statements and tax returns
Having these three things will be crucial for you obtaining the loan or lease you want. They must be well prepared.
Develop a Plan
- Find someone with good credit to sign for the loan or lease
- Determine what business entity you’ll have
- Determine why you need the money
- Determine how much you need
- Determine how you will pay it back
Packaging the Request
- Lenders want the loan request presented in a specific manner
- Use a professional loan packager, especially with an SBA Loan request
Using a professional packager will save you time and money while providing the lender with everything they want. This will increase your chances of approval.
Got a Question? Start Here
Lenders and suppliers use business credit scores to evaluate a company's creditworthiness. A good score indicates that you can manage your finances well and pay your loans on time. It will also help you get favorable lending terms and higher credit limits.
You must consider five factors when applying for a business loan or credit line: loan term, loan size, flexibility, and collateral. Some lenders require applicants to provide a guarantee that they can sell if they default on the loan. Before committing to any loan, carefully evaluate its terms and ensure they align with your business needs.
If you're presenting an offer to a lender, make sure you answer the following questions:
- How much money does your business need?
- How does your business intend to use the loan?
- How will your business repay the loan?
- What will your business do if they can't repay the loan?