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15. Target the Right Lender, 16. Invest in Accounting Software & 17. Research Banks That Are Aligned With Your Long-Term Goals : 26 Business Loan Application Tips

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15. Target the Right Lender

Paul Koger, CEO, Foxy Trades LLC

Shop for loans from as many lenders as possible to find financing with the smallest interest rate and best terms. If you’re creditworthy, the banks will lower their interest offers once they find out you’re also talking to other banks. Some lenders are more eager to approve the best terms possible to a customer in order to win them over, even though there’s no actual competing offer.

16. Invest in Accounting Software

Thomas J. Williams, EA, Tax Accountant, National Association of Enrolled Agents

The underwriting department relies on strong figures and ratios, so you need to make sure your bookkeeping is in order. To do this, you should invest in an accounting software that provides an organized presentation of your financials. Since the approval process depends on an accurate representation of where your business stands, a reliable accounting software will make a good investment for your business.

17. Research Banks That Are Aligned With Your Long-Term Goals

Sean A. Tomalty, DMD, CEO, Tomalty Dental Care

When applying for a business loan, it’s important to research the banks that you will be applying to. Many large national banks are set up very differently as to how they view businesses. The first step is to start by defining your long-term goals and having an honest conversation with your banker. If your goal is to grow a retail store to over 20 locations, but your lender typically only helps businesses finance one or two locations, then they may not be a good fit for you. Conversely, a lender who feels comfortable with aggressive growth may allow you to scale quicker and faster, but might not be a good fit if you only want to build one retail store. The reason for this is because those banks typically have higher interest rates and other loan covenants that aren’t required for a small business. For these reasons, knowing what your bank’s sweet spot is very important.

fitsmallbusiness.com

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