How NJ Entrepreneurs Can Improve Chances For Business Loan Approval
Owning a small business in New Jersey has its own set of challenges. Among them, getting adequate financing usually makes the top of the list. There is always a small percentage of entrepreneurs who can find funding from within, but the majority have to seek external financing by taking out a small business loan. Many times, this process can lead to denials, especially for first-time owners. In order to ameliorate this, we have put together a list of things NJ entrepreneurs can do to improve their chances for business loan approval.
If At First You Don’t Succeed
Most NJ Entrepreneurs try to get bank loans as their first course of action. Unfortunately, banks and other traditional lending sources have raised their entry requirements over the past few years. Business owners in New Jersey must provide excellent credit reports, as well as strong financials, and a robust history of borrowing before getting access to bank business loans. In light of this, many NJ entrepreneurs have been having a lot of success seeking out small business loans from alternative funding sources, such as commercial lenders.
Form A Plan
Every entrepreneur should have a sound business plan, even before the company launches. After all, lenders want to see the potential profitability of a business before they sign off on a business loan. NJ entrepreneurs should include sections detailing overhead, projections for how long it will take for the business to break even and start turning a profit, and what other competing businesses are in the area. It may seem like a lot of work initially, but a strong business plan can make the difference between approval for a business loan, and having to go back to the drawing board.
Check Your Credit Report
Whether launching a new business or getting additional financing for an established company, NJ entrepreneurs need to go through their credit reports and remove any bad marks before seeking small business loans. Make sure there are no outstanding balances or discrepancies. Credit agencies are immense entities, and occasionally some things slip through the cracks. Sometimes outstanding balances linger, long after they have been paid off. Other times, a data entry error can show up on your report that does not even belong to you or your business. It pays to go through a detailed credit report with a fine-toothed comb, before applying for a small business loan.
The Best Business Loans For NJ Entrepreneurs
From the niche bakery in Wykoff to the seasonal resorts along the shore, NJ entrepreneurs need a reliable source for business loans. At The Capital Lenders, we work with small businesses in New Jersey to provide fast and flexible funding solutions. To learn more, contact our offices at 973-577-4226.