Increase Your Chances of Success When Applying for a Credit Union Business Loan
Now and then, business owners need to take out loans to boost capital or add new equipment or technology. A credit union loan is a great way to help you get ahead. However, many small business owners’ loan applications get rejected because they don't meet the requirements. Other small enterprises take loans at high interest rates, which cripple the business in the long run. There are a few essential things that business owners can do to ensure successful application and approval of a small business loan:
How to Successfully Apply for a Credit Union Loan
Determine Your Reasons for a Loan
A credit union loan should be invested carefully so the income of the business can repay the loan. It is, therefore, essential for business owners to review the goals for a loan. Companies that have been operating for more than a year have higher chances of getting a business loan. In the end, the credit should add value to your business and increase the opportunities that improve your bottom line.
Check Your Credit Score
The credit score of a business owner plays a significant part in your chances of getting a loan for the amount you want. People with credit scores of 640 points and above can get a loan with lower interest rates. A good credit score allows you to borrow from financial institutions without having to give collateral. You can visit the credit bureaus and request your credit report to see your score. A poor credit score can lead to higher rates and shorter loan terms, but you can offer collateral or find someone to co-sign on your loan.
Shop Around for a Lender
Visit several banks and credit unions to learn more about the different loan products in the market. Shopping for a lender is like asking for several quotes before choosing a suitable contractor. When you are aware of the types of small business loans available, you can select the right loan for your business.
Prepare Your Business Plan and Supporting Documents
Upon deciding on the appropriate loan for your business, you should create a business plan. The proposal should expound upon your need for a loan and how the money will help your business grow. Attach your business projections, income statements, banks statement, and any relevant documents that support your chances of success.
Make a Loan Application and Presentation
Prepare thoroughly for your presentation because it is an essential part of the application process. Submit your loan application to your financial institution of choice, and when you are successful, you may need to make a presentation. Use every tool available to you to make your presentation as convincing possible.
Clark County Credit Union is a non-profit financial institution that seeks to help small businesses in Las Vegas, Clark County and Henderson. Our small business loans are suitable for many business owners looking to expand or develop their business. To learn about your chances of approval for a credit union loan, contact us today at 702-228-2228.