What You Need to Know About Business Loans
Business loans can provide the capital you need to purchase equipment or inventory for business expansion, finance business expansion pay employees and cover other costs. Before you apply, be certain to know how these loans work and what documentation you will need to provide to your lender. Be aware of how long the process could take and the costs you may be charged.
Common uses for business loans
A business loan can allow you to pay for unexpected expenses like an injured chair at work or the COVID-19 pandemic. There may be times when you need to borrow money to cover an unavoidable expense such as upgrading or replacing technology, purchasing machinery for manufacturing, or even remodeling your store. Some lenders provide credit lines that permit you to draw money when needed. The maximum amount is determined and interest is charged only on the amount drained.
Application requirements and eligibility requirements
You will need to provide detailed details regarding your business including the official name of your business and its tax ID number as well as any financial documents. This could include business plans, proposals, and profits and loss https://southbeachcapitaladvance.com/credit-cards-vs-merchant-cash-advances/ statements and the names and Social Security numbers of those who are owners of 20% to 25 percent or more of your business. Some lenders require you to have been in business for at least one year. Others are open to startups, or do not have time requirements.
A mentor or adviser can help you navigate the process of getting a business loan. SCORE is a good example. It has a network of business mentors who offer free or low-cost advice to startup founders and small businesses. You can search for an area-based chapter to meet with an advisor in person.
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