Small Business Loan Basics
Sometimes -maybe even most of the time - growing big dreams starts pretty modestly. Like reading a blog post about small business loans, for example. If you've given any thought to growing your small business with some additional capital, the loan process may very well be the part that starts to suck the wind from your sails.
At Dime, we're hoping to help simplify that very issue and make it easier and more accessible for business-owners and entrepreneurs everywhere to find the right financial resources they need to expand their businesses (and their dreams) to their full potential. Let’s get started:
Who's going in with you?
Your eligibility for small business loans will be determined by a variety of factors, like:
- The FICO score of all the founding members
- How much collateral you have
- What down payment you're working with
- Relevant business experience and/or profitability
So it’s important to wrap your head around who you have on your small business team, and what assets you’ll be able to show a lending institution.
Who do you want to bank with?
Perhaps just as important as determining who is going to be a part of growing your business, choosing a banking partner to grow your business can play a pivotal role in determining your future success.
Consider the following when evaluating banks or credit unions:
- Experience working with your industry or business niche
- Estimated loan amount you’re looking for
- Participants in the SBA Preferred Lender Program
- Pre Approval process
- Point of contact
- Interest rates
- Policies for collateral
It will also be important to evaluate what kinds of business lines of credit you can access with your bank, as an LOC can help you accelerate your business expansion when you and your finances are ready.
Additional perks to look for can include:
- Mobile banking
- Mobile deposit
- Online bill pay
- Business savings
Basically anything that gets you out of the grunt work for your business as quickly and efficiently as possible will be real advantages when you’re a small business owner. At Dime, we’ll help you find the right resources for your business when it’s time to take things to the next level.