The stock market may be surging, but the effects of the financial crisis are still lingering, putting a dent in the cash flow of small businesses everywhere. Whether you own a restaurant, lawn care business, or specialty retail store, chances are you’ll need some extra money at some point in time for new equipment, expansion, or just to stay afloat. Regardless of the reason, a small business loan or unsecured line of credit from Advanced Funds Network may be the perfect solution to your company’s money woes.
Small Business Loans Vs. Unsecured Lines of Credit
Surprisingly, many small business owners don’t know the difference between these two popular credit options. Small business loans provide business owners with a one-time lump sum loan amount that must be repaid by making regular installment payments over a specific period of time.
Unsecured small business lines of credit, on the other hand, provide business owners with checks that they can use whenever they want to draw money from their credit line. The balance can be paid off whenever a business owner wishes, and interest on a small business line of credit only exists on credit that is actually used.
Being approved for a small business loan or line of credit is a rather simple affair that only takes a few steps. Let’s examine these steps, so you can easily be approved for either one and gain access to the money you need when you need it.
1. Get Your Records in Order
The first step in being approved for a small business loan or unsecured line of credit is getting all of your records in order. The experienced lending professionals at AFN will ask to review the performance and financial history of your business.
Therefore, you will need to provide your business income tax returns and personal income tax returns for the past two years. This information will simply be used to verify your business and personal income as well as any business or personal debts that you may have.
You may also need to provide any legal documents that establish the legitimacy of your business, such as articles of incorporation or a business license. Recent bank statements and financial statements may need to be provided as well in order to demonstrate the profitability of your business.
2. Improve Your Credit
Lenders typically require small business borrowers to have a good credit score. In most cases, a credit score of 640 or greater is needed simply to be considered for a small business loan or unsecured line of credit.
However, Advance Funds Network does not look at your credit score or history. Instead, AFN chooses to focus on the profitability of your business. This provides small business owners with less than stellar credit easy access to the funds they need to successfully run their businesses.
3. Shop Around
When securing any form of credit, it’s important to find the best absolute arrangement for your business. You may feel loyal to your bank, but AFN will likely offer you a lower rate, easier approval, and better terms.
4. Ask Questions
You should ask as many questions as possible to make sure you fully understand the costs and terms of a small business loan or line of credit. The lending professionals at AFN are more than happy to answer any questions you may have.
Thanks to AFN, getting a small business loan or unsecured line of credit is easier than ever before. However, you still need to have your ducks in a row and be prepared to provide financial documents to show you’re a good candidate. By following these helpful tips, you’ll be able to find the best credit option for you and your business.