If you need more resources to grow a new business, you may consider a line of credit from a bank or financial institution. Applying is easy- though it does require you to have your financial ducks in a row, that is, have documentation and information to provide to lenders.
Grow your new business with a line of credit! Here’s how:
Apply
Many lenders are allowing prospective borrowers to apply online for loans or lines of credit. This removes the added stress of a face-to-face with the bank. Be ready and willing to provide the lender with a thorough view of your business and how you operate when asking for funding.
Some documents that most lenders will want to see include, but are not exclusive to, these:
• Personal and business tax returns
• Financial statements from your business checking account
• Business registration documents
• Credit approval
• Annual revenues
• Business plan
If you are just starting, it is even more important to provide thorough financial information to potential lenders when asking for a line of credit. You want the lender to see and feel confident that you will responsibly make your payments on time.
Qualification
If new businesses are concerned about their application for a line of credit being weak, there may be an option to put up some collateral on the loan. This secures the line of credit, making lenders more willing to work with new or underqualified applicants. When you consider collateral, don’t only think of big-ticket items, like your car or house, but you may be able to use invoice financing on your accounts receivables to secure the funding you need.
Talk to various lenders about a line of credit to find the one that best meets your expectations and needs. To learn more, talk to the professionals at WHW Capital today about growing your business with a line of credit.