Business Loan Options
Grow your business with an easy and affordable Business Loan. Fixed monthly payments, no prepayment penalties. Great for a large one-time expense.
To qualify, your business must be at least 2 years old with annual revenue of $75,000 and no recent tax liens or bankruptcies. The borrower must be a U.S. citizen who is at least 18 years old and owns at least 20% of the business. While there is no required credit score, LendingClub prefers if at least one owner has a credit score of 620 or above. Personal guarantees are also required. If you want to borrow over $100,000, you will need collateral. Even without a 620+ credit score, you may still qualify if your business is financially healthy and has strong sales. If you make early payments, Borrowers who pay off their loans early can save money on interest since lenders don’t charge prepayment penalties or interest after a loan has been repaid.
What are the requirements?
While applying is easy, qualifying for a business loan may be more difficult. Here’s what you need to know about business loans and how to get approved for one.
Almost all lenders require you to be 18 or older and a legal U.S. resident with a verifiable bank account, and not be in bankruptcy or foreclosure. Borrowers with excellent credit and low debt-to-income ratios may qualify for interest rates at the low end of lenders’ ranges. Someone with poor or average credit may be able to get an unsecured personal loan on the strength of a steady income and low debt levels, but expect rates near the higher end of the range — up to 36%. Other options for borrowers with bad credit include secured or co-sign personal loans. Some lenders say they don’t have minimum credit score requirements, but that doesn’t mean they don’t check your credit report. Knowing your credit profile before you apply can help set expectations. Several personal finance websites, including NerdWallet, offer free access to your credit score and credit report. Look for a site that offers educational tools such as a credit score simulator or guidance on how to build credit. If you can’t qualify for a loan through a reputable lender, don’t head to a payday lender just yet. Consider these options first.
Every business needs financial resources in order to operate, grow, and invest in futures. With CreditLief’s network of business loan and personal loan funding partners, we can help you get the money you need and give you the power to choose the best terms and lowest rates. We’ll present you with funding partners that match your business’s financial needs. From the group, you’ll have the opportunity to compare their rates and terms. In addition to requesting further information on the interest rate and loan term, you should ask about any fees they charge and the type of penalties that you may face should you make a payment late. Doing your research before the closing process not only ensures that you’re receiving the most cost-efficient terms, but it also allows you to avoid surprises when it comes time to close on the business loan.
Believe it or not, your personal credit score is one of the most important parts of the small business loan application, and it has a huge impact on getting the best business loan for you. The way lenders see it is that they are lending money to the small business owner, so they want to ensure that you’ve got a strong history of acting wisely when someone has given you credit. The better your credit score, the better the chances of your securing affordable small business loans. A great thing to do before you apply for a small business loan is to pull your own credit report and check your credit score. You can do so for free at annualcreditreport.com. (Be wary of any other site that makes you pay!) By pulling your credit report, you now know exactly what lenders will be looking at.
Small Business Loans
Business owners should discuss their options with small business funding partners to come up with the solution that best meets their needs.