Published on August 14, 2019
Opening a small or medium business may be one of the most exciting and scariest things you’ll ever do. It takes a village to make a new business successful, and smart entrepreneurs know they need all the support they can get. While you may use a significant amount of personal savings to get your business off the ground, or even crowdfunding and support from your family and friends, it’s extremely important to plan out your finances ahead of time.
Here we offer some tips for those of you who are considering to apply for a loan to support your new business, or the growth of your current business endeavors.
1. Before you apply for a business loan, make sure your personal credit is in good standing. Consider any debts you have and whether or not they will affect your loan payments. Will you be able to maintain a consistent payment schedule?
2. Know exactly how you’ll spend the money from the loan you’re seeking. Will the loan cover materials for your business? Is it intended for commercial real estate? Who will be in charge of managing the loan?
3. If you are a new company, you must decide how to incorporate your business and determine its legal structure as this information will be presented during your loan application.
4. Gather information regarding your current bank accounts, income earned in the last year, number of employees, cash balance, taxes, etc.
5. Ask for guidance from an accountant, financial advisor, or legal advisor to figure out your fiscal assets, decide whether to apply for a joint application with your business partner or spouse, determine your guarantee, etc.
Banesco USA offers customized loan options to support small and medium businesses. Contact us to answer your commercial loan questions and see which loans work best for you. Send an email to commercialloans@BanescoUSA.com.