Modern tech has made it easier than ever to apply for an online business loan. But just because it’s easy to apply for a long online, it’s not to say it’s easier to actually get the funding you need. That’s mainly the case if you happen to be running a small business. In fact, a good number of online business loan applicants suffer rejection.
Fortunately, there are numerous ways to mitigate the chances of this ever happening to your small business. In this article, we will take you through some of the things you should know before applying for a small business loan online.
Credit Pulls Matter
Whereas your business profile may look reasonable, this will be of no use if your credit has been tarnished by too many ‘hard’ credit checks. Considering it is easy to apply for a loan online, business owners often apply to multiple websites for funding. Actually, many would rather settle for ‘hard’ credit checks as opposed to ‘soft’ checks that don’t affect their credit report. Before you contact a licensed money lender in Singapore, ensure you improve your credit score first.
Manage Your Bank Statements
Your business bank statements are just as important as your personal and business credit profiles when applying for a business loan. And this is easy to see why since your bank statements offer insights into how you manage your business. Furthermore, it determines whether or not you’ll be able to pay back a loan of a particular amount, rate or term.
Many money lenders look at your three most recent months, especially for seasonal businesses, before approving the loan. If you have negative balances, it is in your best interest to negotiate with vendors to pay a reduced amount for the next three months. Alternatively, you can deposit any cash portions of your business in the bank rather than in your pocket.
Just because you’re counting on a licensed money lender, it is not to say your small business loan will be approved. Remember, so many things impact the success of your loan application. No wonder you should never rush through filling the online loan application form simply because you are in dire need of urgent financial assistance. Go out of your way and check to see whether or not you are eligible before moving on to the next step.