Setting up a new business can get someone in high spirits especially if you’ve been dreaming of managing your own startup business for years. But when money is an issue, sometimes an aspiring entrepreneur can be left with only one option – quick loans.
As easy as it may sound, turning to quick loans for the capital doesn’t guarantee you a secure spot in their list of loan borrowers. And getting rejected can shatter all your dreams of a venture company and can leave you in a funk.
But now is not the time to cast down on your lifelong dreams. There are simple ways you can do to get that startup business up and running, and I’ve encapsulated the top 7 steps to securing quick loans for your startup business.
1. Plan down to the last detail
Sit down and figure out the different micro and macro aspects of your business. Determine what type of business it is, write down all your goals, objectives, demographics of the target market, and the likes. Next is to list down everything you need to get started with the brick-and-mortar establishment. The major equipment, appliances, paint, fixtures, labour costs, what have you. Then…
2. Determine a budget and stick to it
This point is vital before applying for a quick loan. You have to know the maximum amount to get everything set up. It’s useless if your quick loan is approved, but the approved amount is 50 percent lesser than what you need. You’re still never going to finish the business construction even if you’ve got cash on your hands. One way to really keep all expenses within the budget is to compare quotes and prices. If something is not cut out for the budget, then you’ll have a couple more options.
3. Get ready for the background check
The initial step for quick loan approval is a background check. It will make or break everything. Make sure all your social media networks exude professionalism and creditworthiness. Now is not the time to show off your drunken nights and vulgar posts.
4. Choose your quick loan wisely
There are a handful of quick loans available today, and all you have to do is determine which one works for you concerning terms, rates, and loan procedures. Here are a couple of quick loans you can choose from:
This type of loan can give you upfront cash with higher loan amounts compared to the other types. It is perfect for those who have a good credit history and want fast money through an online lender.
Small Business Administration Loans have some of the lowest rates on the market. They also have higher borrowing amounts and extended payment terms. The process may be tedious, and qualification might be a bit tough.
Business Lines of Credit
This is a fast loan which gives you access to cash up to your credit limit. It is also considered as an unsecured loan as no collateral is needed when applying. But the loan may incur additional fees. It is perfect if you want short-term financing.
Equipment Loans are excellent for businesses which need equipment in bulk. These kinds of loans give you access to funds based on the lifespan of the equipment. The equipment then serves as the collateral for the loan.
As the name suggests, these loans offer small borrowing amounts only. When your startup business only needs a small budget; microloans can definitely help you out just like Christmas loans.
Business Credit Cards
If you ever need to finance a startup slowly, business credit cards can cut the mustard. Swiping is fast and easy. The only drawback is they have high interest rates.
Unless you’re constructing a new mall, then you may opt for personal loans for your small startup company. The approval for this type of loan will depend on your credit score.
Merchant Cash Advances
This is another unsecured financing which allows you to get upfront cash. In order to pay for the loan, you make payments on a merchant cash advance by taking out a percentage of your sales daily or through a fixed weekly withdrawal from your bank account.
5. Do your due diligence too
If lenders do their due diligence on you, that doesn’t mean you don’t need to do yours on them also. You should research the lending company that you’ve chosen and check if they have a good and solid reputation. Check for online reviews or consult friends who’ve dealt with such lenders.
6. Have everything ready
The entire point of opting for quick loans is getting fast cash. The process partially depends on you as well. Get all the eligibility requirements you need and have them ready for the quick loan lender. This is also one way for them to determine if you’re a trustworthy borrower and if you really mean business.
7. Wow them with a great proposal
Sometimes, the way you present your business plan to the quick loan lender will have a significant impact on the outcome of the decision. Don’t do your presentation by halves. Make sure that it’s striking, relevant, informative, thorough, and logical.
After you’ve done all these steps, I guess the best thing you can do for now is cross your fingers for the approval to take place immediately. Once you’re approved, it’s time to show them that you deserve this loan by working double time and adhering to timely payments. The last thing you want to do is to get a red mark on your credit history.
Related article: Six major ways to fund your startup business