Tips for Navigating the World of Small Business Loans

Trying to weave your way through the web of business loan rates and terms can be overwhelming and confusing. There are multiple financial products for business financing available from various types of lenders, and sifting through what best fits your needs, what you are eligible for, and the various levels of red tape that go with each could make even the most steady of entrepreneurs want to scream.

Everyone wants low interest rate loans, and everyone wants the most favorable terms possible. How is one supposed to make their way through all of the information and determine the best lender and product for them? There are a couple of options, and one very helpful tip that make the process easier, and even pave the way for an easier route the next time around.

Option 1: Do it Yourself
You can make your way through the web yourself, but you need to be focused and prepared. Research and organization are key to not becoming overwhelmed. First, determine exactly what it is you need. Are you looking to finance a startup? Do you have an existing business but need to update equipment? Could a revolving financing tool, such as a line of credit, be more useful in your situation? Are there specific business loan terms and interest rates that will work best for you? Once you know exactly what you need, you can narrow your research to those lenders that offer products fitting the description.

Next, set up a file for each lender and product. Include application requirements, deadlines, terms, rates, and other important information for easy comparison and so that you know where you stand with each one. Once you choose what to apply for, do not discard the rest. Move them to a different file for future reference, and then get busy with the one or ones for which you intend to apply. Keep copies of everything you give the bank in the file so that you will have it for future reference, and to avoid duplicating work as much as possible.

Option 2: Get Help
There are small business loan marketplaces out there, such as Biz2Credit.com, which can save you all of this work. You begin the process by completing a simple form the will request information like location of business, credit score, years in business, and amount of loan needed. Using the submitted information, the marketplace operator plays loan matchmaker between you (the borrower) and the lenders in their network. You are then presented with multiple loan products that meet your specific business needs and criteria. All you have to do is choose from the list and apply. It is fast, easy, and efficient. At Biz2Credit, we can close a loan in as little as 3-4 business days.

The Big Tip: Stay in the Loop
Once you have the financing you need, stay in the loop. Keep an eye on breaking news in the world of small business loan terms and rates and what is up and coming as far as low interest rate loans. Small business loan rates change constantly, and you never know when you will need financing again. Stay knowledgeable, and when the time does come, you will already have part of the work done by knowing what is going on in the industry.