Business loans can provide you with the money you need to purchase inventory or equipment for business expansion, finance business expansion or pay https://southbeachcapitaladvance.com/dri-avast-software-refund-process employees, and also cover other expenses. Before you apply, make sure you understand how these loans work and what kind of documentation you’ll need to provide to your lender. Be aware of the amount of time it takes to complete an application and any fees you might be assessed.
Common uses for business loans
A business loan could help you cover unexpected expenses, such as a damaged office chair or the COVID-19 pandemic. You may also need to borrow money to pay for an unavoidable expense, such as upgrading or replacing technology, buying manufacturing equipment, or transforming your store. Some lenders offer lines of credit that allow you to draw funds as needed and with a limit and interest charged only on the amount used.
Application process and eligibility requirements
You will be required to provide specific information about your business including the official name of your company along with its tax ID and any financial records. This could include business plans, proposals and profit and loss statements as well as the names and Social Security numbers of those who control 20 percent to 25 percent or more of your company. Some lenders require you to be in business for at least one year. Some lenders will consider startups, or do not have any time requirements.
It is helpful to have a mentor or adviser to guide you through the business loan process. SCORE for instance, has a network of business mentors that provide advice for free or at a low cost for entrepreneurs who are starting their own companies. Find local chapters and meet an advisor in person.