Everyone dreams of earning a living on their own terms, and as a result, many turn to opening their own small business. A small business loan can make this dream a reality. Here are some of the things you’ll want to take into account as you look for a small business loan partner.
Look for an SBA Preferred Lender
When you need funds for your small business, you often need them fast. That is why you’ll want to go with an SBA Preferred Lender. Lenders and banks can qualify for what is known as “Preferred Lender” status. That means the institution is allowed to make the final credit decision for any SBA-guaranteed loans. Working with a non-preferred lender, on the other hand, means that the lender has to submit any SBA loans to the Small Business Administration before they can release your funds. That can delay things for a long time.
Your Own Team
Having a dedicated team on hand is essential to financial success for any small business. According to Lantern by SoFi “a flexible form of financing that can be used for almost any business need” is one of the most important things you’ll do in your life. Your own team can guide you through the entire process of starting a small business from start to finish, while also providing insight on how to best spend the funds you’ve acquired.
Most importantly, they’ll help you find the best possible SBA loan rate, which can save you money from the start. It can also save you money in the long term that you can use for other things you need for your business. An expert team can show you what you need to know as you look for the right loan from the Small Business Administration right now.
An Understanding of Your Industry
The small business owner operates in varied industries of all kinds including finance, retailing, and e-commerce. As such, they need a lender who knows the industry where they chose to work. For example, the lender should have an idea of the kinds of challenges you’re going to face as you operate. Your business might be one that operates on a seasonal basis. They’ll know that you may need more cash at a specific time well before you have this kind of rush for your goods or services.
Prior experience is a true asset when it comes to your loan. An institution run by those who have the kind of background you want is someone who helps you figure out the way to go. Ask them about how many clients they’ve helped. You should ideally be able to see lots of positive reviews from clients online when you apply. This is an indication that the company has been able to help many small business owners in the past. It’s also an indication that the company is attuned to the needs of the modern small business in the global economy.
The right SBA lender can be on your side as you create a lasting business of your own.