Qualifications for Small Business Loans

Go to a bank for a small business loan and be flooded with all of their requirements. Some of which are even irrelevant to the loan you are applying for. Qualifications and documentary requirements are asked from clients for a reason – but having too many for no purpose at all is just an expense.

Different companies have their own list of requirements and qualifications for small business loans. But would you believe when I tell you that the longer it is doesn’t necessarily translate to better results?

Bank Loans and Requirements

Bank loans are known to be one of the institutions that ask for a heap of requirements and qualifications. Some of which include:

• Age of the businesses
• Income and cash flow (monthly and annually)
• Credit score and credit history
• Current debt amount
• Potential collateral for the business
• The industry
• The purpose of the loan

The list goes on. Some banks ask for all of them plus other things, while some banks just ask for the necessary ones.

Why They Ask For So Much

The requirements and qualifications for small business loans are for them to determine whether or not you pass what they’re looking for. It’s because these qualifications reflect whether or not you’ll be able to repay the loan or the debt

In other circumstances, they try to match the amount they’ll give you with the track record of your business so that you’ll be able to manage and utilize the funding you’ll receive accordingly. Nevertheless, the qualifications for small business loans are an important part of the application.

If you are looking for small business loans, instead of going to banks, why not try alternate lenders and business funding companies? You can also choose to get help from an investor or a group of investors but they might ask for something heavier than just repayment with interest on top of it.

Different Qualifications

As mentioned, different institutions have different qualifications and requirements for their small business loans. Here with us at SoFlo Funding, however, we wouldn’t ask for requirements that we wouldn’t use, neither would we setup qualifications that a majority of newer and struggling businesses will fail to meet.

Our Qualifications For Small Business Loans

Just like in any other regular funding company, we would ask for certain documents for small business loan applications. What we can guarantee you though, is that we won’t be flooding you with irrelevant requirements.

In most cases of a small business that has been operating for more than a year, we would ask for:

• Record of the small business’s credit history
• The time of the business in the market
• How much the monthly income is
• Spending capability of the business

Small Business Loans for Startups

If you are just in the process of starting your small business, say it’s in its early days, or if it’s really just launching, then you can definitely ask for our help. Whenever startups ask for our help, of course they wouldn’t have and they wouldn’t pass the qualifications, what we look for instead would be your credit history or credit score, as well as your history with other lenders.

With SoFlo Funding, you wouldn’t be stressed out with the requirements and qualifications for small business loans because we always love to keep it simple and concise. No more irrelevant and insignificant documents – we’ll ask for what we will need!