Small Business Loan Qualification Requirements
Oftentimes, what prevents a customer from moving forward with a product or service that they want, or need, is clarity, or the details.
BitX Funding aims to communicate clearly with its customers, and ensure that they are as informed and educated as possible about our loan products.
For those who are familiar with BitX, have considered a small business loan, but are not sure if they would qualify, this post is for you.
Small business loan qualification requirements can change drastically.
If a customer is not kept in-the-know, they may be missing an opportunity they didn’t know they had.
Here are the 3 minimum factors that you need, in order to qualify you for a loan with BitX Funding.
1+ Year in Business
Having a steady income for a year or more, allows a lender to see the stability of your business, and can make better sense of a loan approval.
Around March of 2020, the coronavirus shook up the business world. Some (or most) industries suffered, a few took off such as city-suburb real estate.
Because of this, people shifted jobs, carreres, professions, business models, etc. Out of this, phrases like “covid-business”, or “post-covid”, or “covid-startup” we hear more and more, and are becoming part of our everyday conversations.
Now passing the 1 year mark from March (1 year and 5 months as of now), many of those whose positions were affected by the coronavirus, find themselves settled in their new ventures. If not, they may have been settled for some time now.
The businesses that started in the beginning part of covid, now have passed the 1 year requirement. While most businesses seeking financing, and are looking for information on small businesses loan requirements will be pre-covid businesses.
The wave of coronavirus businesses (as long as meet they meet the other requirements) may now be open to the possibility of a small business loan.
600+ Credit Score
While there are many terms that may make for the right loan for you, one of the things that business owners may consider about business loans is you’re interest rate.
A small business loan interest rate typically decreases as your credit score goes up. While not ideal, by paying a little more interest, you may still be able to secure a loan with a lower score.
Keep in mind that lenders look at both personal and business credit, and credit history. Many small business owners don’t have a business credit score. Because of this, how good an owner’s personal credit is, is typically a major factor of an approved loan.
Your personal credit scores are considered a reflection of the way that you’ve repaid loans and managed credit cards in the past.
At BitX Funding, you’ll need a credit score of at least 600 to acquire a business loan.
If you currently have low credit, a lender who offers SBA loans may be an option for you. An SBA lender may be more willing to loan you money with SBA loans, as they are government-backed.
100k Annual Revenue
Cash flow can make or break your business. A steady and healthy stream of cash shows lenders that you’re capable of sustaining the loan payments, consistently over a period of time.
In addition to documenting your income, lenders will look at your business expenses to determine how profitable your business is. Of course, the larger the margin, the more secure the loan in the lender’s eyes. It’s assumed that you’ll have the means to make the payments.
When applying, be sure you have accurate monthly financial statements from the past two years on hand. Lenders will look at specific metrics like your DTI, or debt to income ratio.
Remember, small business loan qualification requirements vary, and are not always what you may expect.
If you are suspect a small business loan might be right for you,
BitX Funding is a lending partner connecting small businesses to financing options faster and more often than the traditional alternatives.
We know how small businesses operate; our team has been working with entrepreneurs and business owners for over twenty years.
We understand how important it is for businesses to have access to working capital when challenges or opportunities arise.
That is why we team up with lenders who simplify the application process and evaluate business performance factors, not personal credit.
Our dedicated and highly qualified team will help you compare your options and secure funding in days…not months.
The best part is, there’s no obligation and the process is transparent.We believe small business owners drive the economy and that is why we are passionate about helping your company reach its full potential.
We recognize that you have many options to get access to capital to fund your business needs. At BitX, you get a fast response on your loan status within 24 hours.
To learn more about small business loan qualification requirements, have any questions, or want to start the application process, email BitX at firstname.lastname@example.org, call us at 800-824-2407, 0r fill out the short application below, and we will get back to you shortly!
Published by Labate Marketing in Westport CT