Rapid Business Lenders since 1969

3 Things To Square Away To Improve Your Chances Of Getting Approved For A Business Loan

Business Loans Guidance

The ability to obtain business loan approval could be a determining factor in the future viability of your company.

Whether you need the loan for growth purposes, to cover cash flow discrepancies, to purchase new equipment, to replenish stock levels, or to take advantage of a time-sensitive opportunity, getting that funding can be the difference between failure and success.

Here are a few things that you want to make sure you have squared away before applying so that you can up your chances of being approved without issue.

Your Credit Rating

In business, credit ratings work in much the same way that they do for private individuals. If you have a good credit score, your likelihood of being approved for a business loan goes up significantly. While you can still get approved with a lower credit score, the loan will come with higher interest rates.

To raise your credit score, you’ll need to make sure you pay off any outstanding debts and demonstrate consistent and responsible credit management. This means paying installments on existing debts in full and on time, not borrowing more than you can responsibly afford, and diversifying your credit portfolio.

Sound Financial Records

To qualify for a business loan from Rapid Finance, you need to ensure that your business has been operating for at least six months and that your monthly turnover is no less than $5,000.

To prove this, you will need to have accurate and up-to-date financial statements that clearly demonstrate the financial health and stability of your business. These records also need to show that your cash flow is reasonably healthy.

At the end of the day, any lender will want some assurance that your business is capable of repaying the loan. That assurance will come from having solid financial records, which will shield you and the lender from incurring unpayable debt.

A Solid Business Plan

Any business operating without a well-crafted business plan is like an airplane flying without a pilot: it won’t be long before it crashes. Lenders know this, and so, to protect themselves and you from debt delinquency, they will want to see your business plan.

Having a good business plan shows that you take your business seriously and that you have planned for the various threats and risks that could undermine your progress.

Here at Rapid Finance, we want to make business loan approval as easy as possible, which is why we’ve minimised the red tape and administrative hurdles, enabling approval times of between 24 and 48 hours. Contact us today to apply and get your business growth underway!