Qualifications for Small Business Loans

To apply for an SBA loan, you need to meet different requirements and qualifications according to the source or lender.

You need to keep in mind that the qualifications are not the same as for a personal one since the requirements are also focused on your small business and not only your record.

Most lenders request a lot of things since there is a high risk of lending money to small businesses.

Which is why different aspects from it and the owners are considered when approving a loan for one.

However, certain lenders indeed require many things for only a loan—that is not even a large amount—which makes difficult for small business to access it for either starting the business or keep operating.

Understandably, lenders request a series of qualifications, but there should be a limit for the number of them.

This is why small businesses need to research for several sources or lenders to evaluate them and determine which one is the most suitable for them.

You will be able to identify the best lender or small business loan option for you according to the requirements and qualifications of the lender and specific credit options or solutions.

Also, before considering applying for one, you need to determine if your business has the potential to make lenders interested in giving the funds for it.

Since there are different sources for getting loans, you need to work on your business purpose, profile, and other aspects.

But if you can find a reliable lender that can give you access to loans without so many of them, it is also a benefit.

In our company, Business Funding Team, we offer different loan options for small businesses.

And our requirements are not as many as other sources or lenders like banks—for example.

You will be able to access our loans or credits as long as you meet our few qualifications.

What are the qualifications for small business loans?

The requirements vary all the time depending on the source or the lender you are considering. For example, banks are known for being way too demanding with the qualifications and that is why not too many people get credit from them or decide to go for other options or sources. Now, other sources are much more flexible with the conditions and usually offer the same loan amount or options for small businesses if you compare them to a bank.

Therefore, let’s say that the qualifications are not too general or the same for each source, but there are a few ones they all share, like:

• Credit score: it is always the most influential aspect for any source whenever you apply for a loan. This score is what shows the lender the risk it is taking by lending you the money you need. The higher your credit score is, the more chances you have to get the loan you need.
• How many years your business has: the time your business has been in the market or industry, matters. Therefore, you should keep in mind that, if your business is only 1 or 2 years old, you may have a harder time trying to get the loan you need. However, most lenders accept small business with only 6 months old.
• Revenue or income: the age of your business matters because the revenues or income you get from it also matters to the lender. This is what will tell if you are going to be able to pay for the loan later on. Of course, it is not the only aspect they care about but influences a lot.
• How you are going to use your funds: you don’t have to give a deep explanation about why and how you are going to use the funds, but the lender usually cares about the way the business is going to invest the money. Mostly because this helps to identify if you are investing it in your business or not.

There are extra qualifications according to the lender and source. Therefore, make sure to read all the information from each lender you are considering to apply for a loan. Try to choose the one that offers better conditions, loan amounts and doesn’t have too many qualifications or requirements.

Where can you get your business loan?

Angel investors, family, friends and funding companies, are your best options if you only want to fulfill the requirements above. Or maybe, none, which is usually the case when it comes to asking for money to a friend or member of your family. If you want to access a lender or source that offers loans without having to meet several requirements, consider our company, Business Funding Team.

Our company has been offering loans for small businesses for over 10 years and the qualifications they have to meet are almost none. We care about your credit score and other aspects like your incomes. However, we are not too demanding with them and even when it is about the credit score, we give small businesses a chance to apply for a loan even with bad credit.

If you contact and apply for credit in a funding company like ours, it is almost 100% sure you will get it and that is because we are only interested in very specific qualifications. If you do not have good credit, you are also welcome to bring a business partner that can cover this qualification. Therefore, do not hesitate to visit our offices or website to read more about our loans for small businesses and apply for one.

You are welcome to do it and don’t worry, you do not have to accept it later on if it gets approved and applying will not affect your credit score either, which is completely different from other loan sources.