Looking for a Loan in 2020 – Do These 3 Things First!

Small business loan applications are at record-highs. Even at these historically high lending rates, only a 1/3 of all large bank applications are accepted. What are the top 3 things you should do when looking for a loan? Here are thoughts on high to improve your chances. Big banks aren’t always the best for everyone, but they do tend to offer the most competitive rates.

Thinking about making changes to your business? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

Lender Approval Rates are at Record Highs

According to the Biz2Credit Small Business Lending Index, big bank approval rate is up to 28.3% in January 2020. Institutional lenders are nearly 2-times higher, with approval rate is 66.4%. There are trade-offs for each. We go into detail on this in the Lending Ecosystem, which can help you choose the right one for you.

If You’re Looking for a Loan, the Time Is NOW

If you need debt financing, now is the time. One BIG caveat is that just because you can get a loan doesn’t mean you should get it. First, check our articles about Loan Approval Rates and Funding Prep. That said, here are the three reasons that now is the time when looking for a loan:

The economy is still strong

Well… Coronavirus aside, the economy is strong. But this hopefully is going to be a short-term blip.

Job growth is strong

According to the Bureau of Labor Statistics’ Jobs Report, 225,000 new jobs were created in January, and employment rose slightly to 3.6% because labor force participation rate increased to 63.4%. Many of these jobs are created by small businesses. Payrolls are up. 

Optimism is solid

Small business optimism is solid as the New Year began, according to the latest NFIB Small Business Optimism Index.

3 Tips to Up Your Chances of Approval

If you are looking for a loan in 2020, regardless of lender, here are 3 things you should make sure you have complete.

Business Plan

Make sure that you have a refreshed and up to date business plan. Make sure it well-prepared, professionally done, and clear on your goals and use of the funding. A good plan can make the difference between approval and rejection. 

Financial Documents

What documents to do you need? Business income statement, tax returns, and bank statements are almost universally required. 2019 is in the past, so you will want your most recent data that shows the close of your last fiscal year. 

Look for the Best Deal – But Don’t Shop Too Much

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Looking for Loans in 2020 Isn’t a Hassle

If you are trying to look for a loan, you’ll have the ability in 2020. Just follow our three tips and you should be safe.  

Like this article?

Share on facebook
Share on twitter
Share on linkedin