If you’re wondering how to apply for a small business loan or line of credit, there are a few important steps to take before submitting your application. Applying for funding is a great way to help your small business grow as it provides access to additional working capital, can boost marketing efforts, helps you purchase more inventory, allows you to hire qualified talent, and more.
Small business loans and lines of credit are extremely beneficial for quick funding considering that business owners can access funds in as little as one to two days rather than 10 or more. This is particularly helpful for businesses in the startup phase or those struggling with cash flow.
· Term loans — Borrowers are given a lump sum of cash upfront that is repaid over an agreed-upon time period and within specified lending terms. These loans require collateral in exchange for the loan as well as a down payment. You can often secure higher loan amounts through a term loan and can make lower payments over a longer time period.
· Lines of credit — These function much like a credit card in which you are granted up to a certain credit limit and can access those funds at any time and in whatever amount. As you continually pay off the outstanding balance, the available credit replenishes. You are only required to pay interest on funds that have been withdrawn.
What are the Requirements for Receiving Runding?
Loan approval and rates will depend on the overall health of your business, how long you have been in business, and your personal credit. For example, many lenders require a minimum annual revenue for a business loan or line of credit, ranging from $50,000 to $250,000. Additionally, to qualify for most loans, you’ll be required to have been in business anywhere from six months to two years. When it comes to credit score, lenders tend to offer their loans to business owners with scores in the good and excellent ranges.
How do you Apply?
Most banks and credit unions allow you to apply for a small business loan or line of credit online or over the phone. There is also the option to apply for loans through SBA lenders and online lenders.
At Republic Bank, our application process is quick and easy so you can focus on running your business. You can apply in as little as five minutes and receive decisions within 24 hours once your application is completed. Our Express Business Loan has a five-year term, and the Line of Credit has a two-year term. Rates are very competitive and based on business health and personal credit. They range from Prime +3.50% to Prime + 12.00%.
Get started today by applying online, or if you have additional questions and want to speak to one of our expert bankers, give us a call at 800-526-9127 and learn more about our products and services today.