If your business needs an influx of cash, a small business loan might the answer. However, applying for a small business loan requires some preparation.

Here are helpful steps small business owners may want to take:

  •         Build their credit scores
  •         Know each lender’s qualifications and requirements
  •         Gather the necessary financial and legal documents
  •         Develop a strong business plan
  •         Provide collateral, such as equipment, real estate, or inventory

5 resources for applying for a small business loan

Applying for a small business loan from the federal government or a private lender may seem like an complicated process, so here are 5 resources to help you through the application process.

  1. The finance experts at NerdWallet explain how to find the right loan and the right lender, and what documents you need to apply for a loan in “How to Get a Small Business Loan in 5 Steps.” Also check out its companion piece, “How to Qualify for a Small-Business Loan in 5 Steps.”
  2. Read “How to Apply for a Small Business Loan” by The Balance for advice on how to review your credit history and credit score, and how to make an appointment with a lender and how to create a presentation, among other tips.
  3. The U.S. Small Business Administration (SBA) doesn’t lend money directly. Instead, it works with lenders to provide loans to small businesses. This makes it easier for small businesses to get loans and reduces the risk for lenders. Its Lender Match service is a free online referral tool that can connect you with participating SBA-approved lenders
  4. For an overview of available SBA loans, including loans specifically for women- and minority-owned businesses, check out sba.com, an independent, non-governmental organization that’s not affiliated with the Small Business Administration.
  5. Read “How to Apply for an SBA Loan in 6 Easy Steps” by the experts at FitSmallBusiness to learn if you should use a broker to secure an SBA loan and for links to the forms required to apply for SBA loans.

 

Thanks for reading our educational resource! Any above reference to a specific company or product is meant for educational purposes only and is not specifically endorsed by Pie. If you’re a small business owner, see more small business resources or get a workers’ compensation rate in 3 minutes.

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