Are you considering taking out a loan for your small business? Financing your business is a serious undertaking, and it’s important to make well-informed decisions about your need for capital at the onset. Below, we’ll review some key steps to take and questions to ask when seeking funding.
Consider these key questions before applying for a small business loan
Positives and Pitfalls of Online Lending
Are you thinking about using an online lender to finance your small businesses? If so, there are a few things you should know before you get started.
Know your rights as a small business borrower
The way small businesses borrow money is being completely transformed by the rise in online lending. Innovators are providing faster and easier ways to borrow and increasing access to credit in communities that have historically been underserved. But this transformation will only achieve its potential if it is built on transparency, fairness, and putting the rights of borrowers at the center of the lending process.
Preparing for a Small Business Loan: A Checklist
A small business loan can be a powerful tool for growing your business, or just meeting day to day expenses. Deciding that you need a loan may be easy but the real challenge is making sure you're ready to apply for financing.
Before approaching a lender, it pays to make sure you're putting your best foot forward. This checklist serves as a handy guide for getting your business prepped for a loan.
Know Your Debt Service Coverage Ratio
Are you a small business owner ready to seek outside funding? You might think that finding a lender is the initial step. However, there’s an important financial ratio you should understand first. The debt-service coverage ratio (DSCR)helps determine whether or not your business can take on a loan and the size of small business loan you can handle. Additionally, lenders frequently use DSCR as a way to evaluate whether they should lend money to a business. Having a good debt service coverage ratio can be critical to getting low-cost funds for your business.