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How to Make Sure Your Small Business Loan is Approved


In today’s economy, your business needs cash flow. There are places to help companies seeking business funding services such as Prosperum Solutions which makes funding easy. Small business loans through banks and other traditional lenders such as credit unions offer a wide variety of small business loans which are usually backed through the Small Business Administration. Small businesses are being started in every area of the economy, and with e-commerce it is easier than ever to start a business. But, staying in business takes cash flow. A small business loan may be just the way to do that for your company. If you are properly prepared, getting one of these loans may not be a great choice. Once you know what investors seeking projects are looking at, you are well on your way to obtaining start-up business funding.

Do research about what business funding services may be available. Of course, one possibility is a traditional lender such as banks and credit unions, however, there are other possibilities as well. Look into reputable business funding websites. You may even consider international investors seeking new projects. Determine if there are special loans or business grants given for your industry or situation.

Obtain your current credit scores and reports. We recommend you use creditkarma.com (or some other free site) which gives you the information for free from the three top rated credit reporting companies. Review and verify the accuracy of any problems. Clear up any mistakes with the credit reporting company or lenders as quickly as possible. Set up a plan to pay off any debts or liens. Once you have cleared up any negative issues on your credit report, it is time to look for business loans or other business funding services. If you are seeking business funding with bad credit, seek investors looking for projects rather than a traditional lender.

Create a detailed cash flow plan. This should include your current cash flow situation and what your expectations of cash flow will be for the next year. The plan should also include 12-month profit and loss projections. Be detailed and explain any projected losses. When writing your plan you should follow industry standard practices so traditional lenders or investors seeking projects get a clear picture of your situation.

Create an organized folder containing your company’s income records, tax forms, resumes’, personal credit report of owner or partners, ownership documents for any collateral, and all bank and financial statements. You will also need to include a detailed business plan. Once you have those items, check online for the lender’s loan application to determine any special requirements. You can visit www.sba.gov for helpful information on how to prepare your loan request and business plan.

To qualify for an SBA loan, you will need an interview with the lender. When the big day arrives, bring two copies of all the items you prepared in your folder of documents including two copies of your detailed business plan; also include a completed loan application and any other information the lender will need. All financial information you give the lender may need to be proved with documentation such as bank statements.

If you have a local SBA office, check with them for any additional help they can offer. It is often better to approach local banks rather than large national ones for SBA loans. Local banks are more aware of the local business climate, have contacts to help with special projects and may have mentoring programs.

Your loan proposal should give detailed information of how the loan will be used, the exact amount you need, and what type of small business loan you are seeking – 7(a) or express.

Prepare a plan for repayment. This step shows the lender you have planned for repayment of the loan. You also want to include any planned changes to make your business more profitable. An SBA Form 4-A will also be required. This form shows a list of your collateral and two forms of how you will make payments (current revenue, secured loans or sale of current inventory or assets).


Working capital for small businesses is available. Research your options, clean up any credit problems, prepare your documents for the loan process and confidently present your information. Seek available funds when you need them and take control of the future of your business now through traditional lenders or investors looking for projects to fund.

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