What You Need to Qualify for Startup Loans
While there’s no secret formula to getting a start-up loan, there are certain things you can do to improve your odds. Here’s what you need to be ready for to qualify.
What Does It Take to Get a Startup Business Loans
Typically, to be considered for a start-up loan, you need your personal and household financial information, such as net worth, credit score, and annual income.
Preparation is Key
- Have all documentation prepared first – Before you apply for any loan, make sure you have anything you need to verify your net worth, including bank statements, tax returns, and assets.
- Prepare a good business plan – Your idea should have concrete numbers behind it with well-illustrated assumptions about how you plan to get where you want.
- Have prior experience in the field – It’s often easier for someone who has worked in the restaurant business before opening up a restaurant than it is for someone who hasn’t. If you don’t have any experience in the field, see if you can gain some experience before applying.
- Build up your credit score – A good credit score and credit history are key to getting your foot in the door. Aim for 680 or higher. You can build your score by keeping accounts open for long periods. Keeping your credit balance low, opening multiple credit lines, and paying everything off on time.
- Be fast and transparent –A lot of good applications are stuck in the loan pipeline because borrowers are slow to respond. If you respond quickly, your chances are much better.
Let Us Help
BitX Funding is the online marketplace for small business owners looking to fund a project.
We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and are passionate about helping your company reach its full potential.