Why You Should Talk to an Expert Before Applying for Small Business Funding
If you plan on applying for small business funding, it would be wise to speak with an expert who is well versed in the small business financing world. Small business lenders have very specific requirements and criteria that entrepreneurs and small business owners have to meet to get approved for funding. In my 8 years of working in the small business financing industry, I’ve discovered that most people have no idea what is required of them to successfully raise capital from a bank or lender.
This is one of the most important reasons why you should consult with an expert before applying. You don’t want to make the mistake of applying for something you do not qualify for. Here are three other reasons why you should consult with an expert before applying for small business funding:
- Apply for the Right Type of Financing – Business financing is not “one size fits all”. There are many different types of small business funding programs out there and it’s important that you know which one will work best for you. A good small business funding expert will help you determine what type of financing you should apply for based on where you are in your business (and your credit and financial status). For example, depending on your personal credit history and income (and whether your business is a startup or established), you may only qualify for an SBA microloan. However, this is not something you will know unless a small business funding expert tells you.
- Connect with the Right Lender – Applying for the right type of financing goes hand in hand with connecting with the right lender. Many lenders have a “restricted industries list”. The businesses on this list are businesses they will not lend to (based on their industry). It’s important that you connect with lenders that actually lend to businesses in your industry so you don’t waste time. A good small business funding expert will connect you with the right lender and save you the headache of being denied.
- Get the Results You Want – The bottom line is that small business funding experts will help you get the results you want. Good small business funding experts can educate you on what you need to do to qualify for financing, what type of financing you should apply for (based on your current situation), and connect you with a lender that is the most suitable for you. It will save you time and money in the long run and you will get the results you want much faster than if you applied for financing on your own.