Expediting Approval for SBA Loans
If you are interested in a business loan, you likely want to get through the application process and get the money as fast as possible. However, if you’ve started the application process, you probably already know the process doesn’t really move that fast. SBA loans are offered by the Small Business Administration, which is a government agency. So, it’s probably not a complete surprise that there is a lot of red tape you must go through to get one. In addition, it’s not such a shocker that the process can be slow going. Luckily, there are some things you can do to expedite the loan process.
Tip #1: Apply to Multiple Lenders
You may have a lender that you really prefer to work with, but in order to increase your chances of approval, you should have a few lenders in mind. It never hurts to have backups just in case you are turned down by one of them. You can submit multiple applications at one time without an impact to your credit. By doing this, you are able to have your application on the desks of multiple lenders at one time. If you wait to apply to a new lender only after getting a rejection from another one, you are wasting time. The amount of time it takes to submit the application and wait to hear back can be lengthy.
Tip #2: Get Your Financial Information in Order
Being prepared before you start applying will go a long way towards speeding things up. Having to track down documents during the application process slows things way down. You want to make sure you have all your accounting books, tax information and any other financial information ready to go. In addition, make sure your business plan is polished and includes a good plan for the use and pay back of this loan.
Tip #3: Consider a Larger Down Payment
While SBA loans usually allow for a smaller down payment than conventional loans, it’s a good idea to try to put more money down than what is required. This is especially good if your business is a higher risk. Being able to guarantee more money up front can speed the process up because you are lowering the lender’s risk.
Tip #4: Ask for Help
You don’t have to go through the loan process all by yourself. Consider getting professional help. A business advisor or accountant can offer their expert advice and guidance to help make the process easier. Also, consider working with an SBA business advisor who has the inside information on SBA loans to help you know what you will need to do so you can be prepared for the process before even getting started.
Following these tips can make securing SBA loans faster. By being prepared and thinking ahead, you are able to avoid many of the usual stumbling blocks that slow approvals down.