If it’s time to expand your business, you’ll need access to working capital to pay for new employees, office space, materials, equipment, marketing, and more. Not every aspiring business owner has the savings to get up and running. This is where business loans come in.
But like most good things, business loans don’t come easily. Unlike a personal loan, they involve more risk for the lender, resulting in stricter eligibility requirements. While many business owners want to obtain a business loan, they may be unsure if they meet the requirements. It doesn’t help that the internet is flooded with an overwhelming amount of information on small-business loan requirements.
To cut through the noise and help you secure financing for your business, we’ve combed through all the loan application requirements for business loans so you don’t have to.
Once you’ve finished writing a business plan with financial projections and ensured fiscal responsibility, it’s time to get funded. (Remember, success is in the details.)
When considering a borrower, lenders primarily look at six different aspects of the borrower’s profile—and they may set a minimum requirement for each. Baseline small-business loan requirements typically include a good credit rating and an annual income of at least $20,000 (if you’re new in the business, some lenders will go as low as $10,000). However, since exact requirements vary from lender to lender, we’ve reviewed an assortment of lenders who can work around your unique needs.