What Do I Need to Get A Start Up Business Loan?
When looking for a start-up business loan there is fundamental information that you need to have so you qualify for the loan. Commonly businesses approach Pinnacle looking for start-up investment with little to no information. We understand that when starting your new exciting venture, there is plenty to get organised. Having the financial backing to set your dream alight it crucial. Correctly, you first may have identified using a business loan is better than investing all your life savings. So how do you get a business loan? The first thing you need Is a sound business plan.
A plan that illustrates what the business does, why it will be successful, what you are looking to invest in, and a clear cash-flow projection. This is pivotal. Without this, would you invest in someone else’s businesses not knowing anything about it? Of course, you wouldn’t. So, having your business plan ready to go, demonstrates that you are well prepared. Secondly having your business bank account set up is again an absolute must. This shows to the lender that you have a place for them to release the funds into. Plus, you have passed relevant AML (anti-money laundering) checks with your business bank provider. Once you have these 2 pieces of information readily available then approach a business finance broker.
Poor Credit Business Loans
Business owners looking for a business loan don’t always have the luxury of having excellent credit scores. This may be showing as poor credit. For several different factors that are historic and out of your control. However, every financier will do a credit check. But don’t panic if your credit score isn’t great. Having the full picture of why your credit score may be below ‘average’ is where we can help. Knowing what happened and having actions to mitigate against any further risks and how you can improve your credit score is positive. Alternative finance lenders can be flexible in their approach and accommodate a wide variety of businesses and business owners.
So, don’t think just because your personal credit score is low then you won’t qualify for a business loan. There are many options and having the whole of the finance market available to you through a finance broker like ourselves is crucial. Whether you have good credit scores or not so.
How Much Does A Start Up Loan Cost?
Running a new start business and keeping overheads as low as possible is a key variable. Whilst keeping cash-flow strong can be difficult. So, when investing at the start having the financial backing to grow your business highly important. The question of how much do business loans cost is common. For good reason. The answer is all dependent on the individual business owner or owners’ circumstances. No two businesses are the same.
If you are a homeowner, excellent credit, and well experienced within the business sector then this will carry lower interest rates. Rates of circa 3%-7% per annum. If you are a non-homeowner, poor credit and no experience with little to no business plan interest rates will rise. You can start to see why having a business plan is so fundamental. Especially when a human underwriter is assessing your application. Installing the confidence in the finance company to invest in your business.
Looking to Apply For A Start Up Business Loan?
Hopefully, after reading the above you start to get a feel for what is required to secure a start-up business loan. What information will be assessed and commonly not just the funding is put in place but a business mentor to help you grow your business. It’s in the business finance company interest to support and grow your business. The better and quicker your business grows the fewer risks and potentially quicker you can repay the funds. Having a finance broker in your corner to grow and source the best business loan for you will save you time and money.
The 2 most important factors within business. At Pinnacle we know that every business has to start somewhere. You may have the best vision of your business but unsure where to start with business finance. We have helped countless businesses of all sizes secure funding. Not just corporate and SME finance but new start funding!