Applying for a business loan online has probably never been easier. There are a number of different banks and lenders that somehow offer financing online. With digital processes for application, credit assessment and payment, online business loans have become fast, safe and secure!
But what to do before you even apply for a corporate loan?
It can be difficult to know how to think about the new types of lenders and the more traditional big banks. Banks usually want you to go through some manual processes and meet for physical meetings. This is time-consuming. Especially for a small business owner with many balls in the air. In addition, the application, credit assessment and disbursement process differs significantly from lender to lender.
1. Do research on the lender
Perform your own small assessment of the lender before contacting or applying for a loan to your company. Put up a checklist for your assessment and your needs. For example, it may look like this:
- What do their reviews and reviews look like?
- What amounts can you borrow? (Max / min USD )
- What loan periods can be offered? (Max / min months)
2. Be prepared to answer questions about your business
If you have not been asked to attach business plans, results reports or other documents, it may be something that you are asked to produce later. Be prepared! Something that may come up during a call or assessment is:
- Your business idea. What is the business about?
- Your turnover. What has it looked like historically and what does the future look like?
- Other information about you or your company.
3. Be clear about the purpose and purpose of the loan
Whether you are going to meet the lender at a physical meeting or just have a phone call, you will need to be clear about the purpose of the business loan. Is it about investing in stocks, marketing, staff or paying the tax? Then indicate what the purpose and purpose of the corporate loan is. If you are too vague in your description, it may mean that you are not granted your application.
4. Show that you have thought about how to repay the loan
The lender has certainly made his or her own assessment if he or she thinks you can repay the loan. But there may actually be things that cannot be found, such as that you have a big deal going on or something else that will change the liquidity of the company in the future. It is such info that can determine the amount and duration of the loan. Therefore, always be honest when describing the company’s situation. Should you deliver any luck calculus that goes into the punch, you will not get the confidence of that lender again. Or you get it but at a higher cost …
5. Review your collateral and personal creditors
Some lenders focus more on physical collateral such as real estate, machinery, vehicles or the like. Others choose to focus on personal creditors as security. Part of the credit assessment may be to see how the person or persons behind a company are and what their history of the economy and enterprise looks like. Depending on who you take in as a personal guarantee, the lender may grant a higher amount for a longer maturity.
How does Astro Finance Corporate Loan work?
Online business loans have never been more available! At Astro Finance you can get a business loan quickly, safely and easily by making a free and non-binding application. We offer corporate loans between USD 10,000 – 500,000 for up to 12 months. You can repay the loan at any time in advance – free of charge!
- No entry fee
- No fixation
- No hidden costs