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Tips on Obtaining a Small Business Loan

November 29, 2019 4:44 pm Published by Leave your thoughts
small business loan

When you own a business, you may find yourself spending money on various necessities. Once you get the basics covered like legal fees and equipment, for example, you’ll notice that the costs of starting your business will keep adding up in other areas. You’ll have to consider monthly expenses, like insurance, payroll, your office’s rent, and inventory.

At SharpShooter Funding©, we recognize that small business owners are looking for methods to fund their business, which is why we offer loans where you will likely be approved (our approval rating is over 75%).

Owning a business can get expensive, which is why you’ll likely seek out financing options. If you’re just starting out in the business world, you might be hesitant to go to a traditional bank since they require a lot of paperwork and typically reject businesses that have been in business for fewer than three years. Don’t be discouraged, though – you can always seek out financing from a company like ours. 

Since we are experts in the world of small business loans, we have some valuable insight on how you can obtain a loan for your business. When you get to the application process, you’ll want to be prepared so you can acquire the capital that is necessary to run your business. 

Why do you need a Small Business Loan?

First, you may be wondering if a small business loan is necessary. Here are the main reasons why people seek out these loans:

  • To get your business off the ground and grow it
  • To better manage daily expenses
  • To have emergency funds if ever needed

Many business owners don’t have any other convenient options for funding their business, and a small business loan can take care of their most pressing financial needs. That’s why so many small businesses use these loans as an option.

Keep Your Records Organized

When it comes to your small business, you need to be transparent and keep a record of all your finances. Accounting and taxes need to be up-to-date and precise.

Hiring an accountant is a safe way to ensure all your documents are organized, but if you don’t have the means to hire an accountant yet, you can invest in online accounting software like QuickBooks to keep track of your business’ finances. Many small companies gravitate towards this software as a way to accept business payments, manage payroll, and to track and pay bills. 

Once you have a sense of your financial situation, you can decide how much money is necessary when applying for a loan. 

For most traditional funders, you’ll likely have to submit the following documents:

  • Business and personal tax returns, as well as bank statements
  • Business legal documents like commercial lease and articles of incorporation
  • Business financial statements

If you want to go with a small business loan with SharpShooter, you don’t have to worry about all the paperwork, and can get your money in as little as 24 hours. 

Do You Qualify for a Loan?

Typically, banks look for a business with proven cash flow that will meet monthly loan payments. For companies just starting, this process can be challenging as you won’t know this information until after your business has been operating for a while.

That’s why many small businesses seek out small business loans like the ones we offer at SharpShooter. We even tailor your repayment period to your business’ unique needs.

For instance, if you’re having a slower season, we will adjust your payment structure so that you pay less during those months. Then, once your business picks up in the busier months, we can increase the payments so that you can afford them. 

Credit scores also come into play when qualifying for a loan. To access your score, you can receive your credit report from Equifax or TransUnion. Some apps or websites will also tell you your credit score, like Credit Karma. 

Some businesses think that since they have a poor credit score, they’ll be out of luck when it comes to obtaining a loan. Banks usually require a credit score of 680 or above – for many, this option will not work. That’s why so many businesses turn to small business loans like the ones we offer at SharpShooter. We do not take your credit score in to account when you apply for short term business loans with us.  

Can You Make Your Loan Payments?

Since you’ve been tracking your company’s financial records, you’ll then want to come up with a reasonable goal – that way, you can pay towards loan repayments every month. 

A general rule of thumb is that your total income should be 1.25 times your total expenses (including your loan repayment). To make the process simple, you can use a business loan calculator online on sites like Nerdwallet or Shopify

Find the Right Funder

Determining what loan will work for you is imperative when seeking out the right funder. Many people choose online funders like SharpShooter because they lack collateral, and need to receive last minute funding. Most small businesses look for flexible term options, easy and fast approval, as well as various loan options. Since we offer all these options, there’s a reason why many small businesses acquire loans from us. 

If you’re looking for long term funding options from Sharpshooter, you’ll be pleased to know that we offer funding up to $250,000 with 5-Year fully amortized funding plans By providing long term funding in Canada for businesses of any size, we can help you manage your business’ cash flow.

Starting a small business can be a life-changing venture and requires hard work and a dedicated team. Since you’ll likely need funding to excel at your business, you’ll want to find the most convenient option possible.

Now that we’ve outlined some ideas for you about what it takes to obtain a small business loan, you can find a loan that is compatible with your business goals. At SharpShooter, we are confident that our loans will be the ideal choice for your business.

When you apply for a loan with us, you can rest assured that we will provide you with more flexible options than the ones offered by traditional banks. Plus, one of our main draws is that you can expect there to be no hidden fees and less interest. We pride ourselves on being transparent with our customers and supporting them in all of their needs. 


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