Houston Construction Monthly 2018
Houston Construction Monthly 2018
Houston Construction Monthly 2018
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Business loans are difficult<br />
to obtain by for many<br />
applicants. In the U.S., out of<br />
10,000 applicants, 82% were<br />
denied for a business loan.<br />
What Are My Business<br />
Loans for Poor Credit<br />
Options?<br />
Is your bad credit getting in the way of obtaining a business loan?<br />
By Dale Harris with Article City<br />
What Are Business Loans?<br />
The definition is pretty straightforward, a business loan is a sum<br />
money borrowed from a lender by business to start, expand, or<br />
run a business.<br />
Business loans are risky, especially when the business is a startup,<br />
which is why they are so difficult to obtain. The costs for underwriting,<br />
evaluating, and verifying a small business loan are<br />
usually the same as a large loan. Banks usually focus on high profile<br />
business loans instead of startups.<br />
Qualifying for a business loan is tricky even if your credit score<br />
is nearly perfect. There are many other factors banks consider<br />
such as, whether you can provide collateral, tangible assets, and<br />
financial status.<br />
What Do Lenders Look For?<br />
Every lender is different in their requirements, so you need to<br />
make sure you know the minimum criteria. Meeting the criteria<br />
will make you a strong applicant.<br />
Lenders will want to see your personal credit score and business<br />
revenue to see how you handle paying bills. Many of them will<br />
quickly cross off bankruptcies and delinquencies.<br />
Before considering applying for a business loan you should start<br />
gathering some financial information and legal documentation.<br />
• Both personal and any business tax returns<br />
• Business and personal bank statements<br />
• Business licenses<br />
• Income statements<br />
• Balance sheets<br />
• Personal Identification<br />
• Commercial Leases<br />
Develop a Business Plan<br />
You will become a stronger applicant if you bring a business<br />
plan to a potential lender. They want to see your business will<br />
be strong and profitable enough to be able to pay the loan back.<br />
You’ll want to develop a business plan that will impress a lender<br />
even if you have poor credit. You can recruit the assistance of<br />
14 CONSTRUCTIONMONTHLY.COM
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