America is built upon our entrepreneurial spirit. This spirit is what drives our great country to innovate and endure adversity in challenging the ways businesses are managed. Everyday, individuals embark on setting up a business to capitalize on the advantages our great country has to offer. With changes to regulations, additional requirements and limited lending practices, traditional bank loans aren’t always available, and may not be accessible for the everyday business.
Fortunately, there are numerous types of alternative lending solutions in the market place. But, finding them by simply walking into your local bank, or credit union isn’t going to be fruitful. Connect Lending provides an online platform to match small business owners to the right lender for their business solution. When using our platform, review these key factors with your Client to ensure a smooth process for securing a loan:
When applying for access to capital, be as accurate as possible in your answers to our online questionnaire. Lenders will all have access to run credit reports on you as an individual, review references and to see your business cash flow. Any inaccuracies provided up front will be scrutinized as you begin developing a relationship with a lender. Do not provide information you think Lenders want to see on a questionnaire, as the Connect Lending platform is designed to match you to the appropriate lender based on your criteria. The more accurate and complete the information you provide up front, the farther it will go in setting you up as a reliable borrower.
Prepare to take risks
For entrepreneurs, you must be prepared and willing to put your own collateral or cash on the table in order to secure a loan. Unless you’re willing to pay the added cost of a large interest rate, large payments, or short terms for repayment, you will need to put your own “skin in the game” to demonstrate you are committed to this business. This shows the lenders you are confident in taking on the risks associated with running your own business, as you are fully invested in making it successful.
Communicate in a timely fashion
You expect lenders to be responsive when making a loan application, as they’re going to reap the benefits of revenue. You should also be responsive to lenders reaching out to you, because your level of responsiveness signals your level of commitment. When asked for additional materials, ensure you’re communicating with the lender appropriately. If materials are not immediately available, let them know it may take you time to gather them. Be as responsive as you can to show you are an involved and committed business owner.
This post originally appeared on America’s Small Business Development Center website blog.
It was also featured on LinkedIn Pulse by Rick Burgess, CEO at Connect Lending