What you need to know when applying for a small business loan

Small businesses need capital to grow, and with all the lending options available to business owners, it can be overwhelming determining which lender and loan product will be the best fit for you and your business. Excelsior Growth Fund (EGF) provides responsible and affordable business loans to small businesses throughout New York state, and we’ve helped many Buffalo-based businesses access the capital they need to grow and thrive.

Our team of lending experts has received numerous questions on applying for business loans, preparing necessary financial documentation, and the true cost of borrowing, among other topics. We’re always willing to work with business owners one-on-one on these issues to set them up for financial success.

What we tell all business owners is that the best way to prepare for a small business loan is to do some research on what will be expected of you throughout the process so that there are no surprises. You’ll show lenders that you understand what’s required and perhaps improve your business’s financial picture, too! To help you get started, we’re sharing just a few of our business resource articles on what lenders look for, the loan process, and more.

  1. Common Loan Fees: What Small Business Owners Need to Know

Choosing the best business loan for your needs can be overwhelming. Many business owners focus on interest rates to compare loans, but loan fees are an equally important item to consider. We compiled a list of the most common loan fees and what you need to know about each of them. Use this information when comparing loan options and show lenders you’ve done your research by asking questions about these fees on their products.

  1. Cash Flow: What It Is and Why It Rules Small Business Lending

An important part of your business’s story that lenders will look at is your cash flow. Why is it so important? Cash flow provides a picture of your business’s financial capacity to pay back a loan, which explains why it’s a primary reason that loans are denied. This article provides more details on cash flow along with tips on how to improve your business’s cash-flow picture.

  1. Insider Tips: What Lenders Want to See in Your Business Plan

Business plans are essential in the startup phase, but can also be an invaluable tool as your business grows and expands. Most lenders will want to see your plan during the application process, and to help you increase your odds of approval we’re sharing what the EGF team looks for when evaluating plans of potential borrowers.

  1. SBA Loans: Your Road Map to Financing

EGF and its affiliates offer a variety of SBA loan programs to support small businesses and we receive many questions on the process. The SBA loan process is known to be comprehensive, and our teams have expert knowledge and experience to guide a business owner through each step. To give you a better idea of what to expect before applying for an SBA loan, we created an infographic that provides a high-level overview of each component.

  1. What to Consider Before Refinancing Small Business Debt

When your business is in a growth period, you’ll likely need more capital to reach your goals. Something that many business owners consider at this time is replacing their existing debt with a new, more affordable loan, or refinancing. Doing so can free up more capital to invest in your business. This article provides insights on what lenders look for when a business refinances debt, as well as questions you should ask during the process.

Interested in learning more? Visit EGF’s Business Resource Library or contact out Business Advisory Services team if you need assistance. If you’re ready for financing now, applying with EGF is easy. Just complete our digital application in 20 minutes and we’ll send an approval within two business days and funding in five. We’re ready to help your business grow and reach its full potential.

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