Getting Approved for a Business Loan

Small business loan approvals have dwindled within the past year. According to a survey by the New York Federal Reserve it has become harder to get a small business loan approved, particularly for those who were seeking microloans.

According to a survey of over 500 businesses in the Northeast area only 58 percent of applicants sought a microloan ($100,000 or less), most often for short-term working capital. Nearly 30 percent of businesses surveyed didn’t apply for loans between May 2011 and April 2012 because they didn’t think they would be approved; of those who applied, 63 percent received only partial credit. Forty-three percent of businesses plan on applying for more credit within the next year, a majority of them being those who only received partial credit.

Small businesses are still recovering from the economy, but now it has become even more difficult for them to stay afloat. For those who intend on opening a new business they also face the challenge of getting approved for a start-up business loan as some lenders are weary of taking a risk on a start-up.

According to the Small Business Administration, the total number of small business loans has dropped by seven percent in comparison to a six percent decrease the previous year.

There are many ways to prepare for applying for a start-up business, or small business loan.

• Research the financial institutions you plan on applying to.
• Gather the documents you need, such as your credit report, and be sure to go over them to check for any inaccuracies.
• Prepare for an interview with your potential lenders.

The Takeaway

Researching and finding the right lender for you is one of the most important steps in getting ready to apply for a business loan. Speaking to a professional and figuring out what loans and lenders will work for you is just as important. AmOne’s trained Money Coaches can help you with the process. Get started by contacting us; your call to us is free. We can help you find a lender that fits your needs, and assist you with getting your credit report and any credit repair you may need.