There are certain businesses mainstream lenders do not want to be associated with—and some of those industries would surprise you. Being in one of these “forbidden industries” can add another challenge to finding funding, and make some forms of funding impossible.
Kevin Sasser
Red Flags to Avoid When Searching for Funding
Finding funding for your business is a long, involved process, but there are common “red flags” that underwriters monitor that impact your search. Here are some of the most common red flags underwriters will be looking for.
Improving Your Business Credit Score
Your business’s credit score is based on the same principles as your personal score. But there are scenarios where your credit score may not accurately reflect your business’s financial stability. If you feel that is the case, here are some steps you can take to improve your score.
Business Loans and Other Funding Options
If you conclude that your business needs more capital to sustain operations and fuel future growth, you have a wide range of options. There are traditional bank loans, but there are also many alternatives with different costs, terms, impacts on your credit rating, and application processes.
What Do Lenders Look At When Evaluating My Loan Application?
When you’re applying for a loan, it helps to think like a lender. That will make the application process simpler, give you a realistic view of your own chances of getting the funding you want, and help you identify steps that will make your business more lender-friendly.
Warning Signs of a Bad Lender
How do you know if the potential lender you’ve found is a credible opportunity? Finding the right lender is a great boon to a business, but a bad lender is the fast path to a very painful learning experience. There are some simple warning signs to look for to identify a bad lender.
How Much Money Do You Need to Start Your Business?
Knowing how much money you need to start your business requires careful planning. Costs should be broken down into startup expenses and operating expenses, and you should put together your best, most accurate estimate of all your expenses in the first year.
Documentation Required When Applying for a Business Loan
Finding and applying for business funding requires patience, time, and a lot of documentation. Depending on your financial situation, the amount of paperwork you need will vary. It will also depend on whether you are getting a conventional loan or an SBA loan.
