Compare Small Business Loans
Start your business idea, or help to expand your current business, by comparing the best USA small business loan deals.
Top Deals For Small Business Loans
Here are our top picks for small business loans, simply click the buttons below to start your online application.
There are brilliant deals compared on the Simple Dollar website here.
Four Tips for Getting Best Small Business Loan
Business loans are riskier than personal loans, and therefore harder to secure. There are tips to help you increase your chances though.
Step 1: Clean Up Your Personal Credit Score
Especially for small businesses (less of an issue for larger, more established businesses), the personal credit ratings of the owners and decision-makers is an important factor. Since you control your business, the degree of care you take in your personal finances probably reflects how you run your business. Taking six months to a year to actively improve your credit rating is a good idea, and may mean the difference between getting a loan, and walking out empty handed.
An alternative to a business loan is a personal loan that you take out and then lend to your business. You will be personally liable to repay it, even if the business fails, but the lender will look at you and your credit fitness – not at that of the business.
Want to further increase your chances of a successful application? Offering security by putting up your home or other assets against the loan will always help.
Step 2: Create a Fantastic Business Plan + Pitch
You’ll want to let the bank in on why your company is a good bet – even if that means sharing secretive or proprietary information. You should be able to arrange a non-disclosure agreement, so you can share your business plan and financials with the lender, without the risk of it going public afterward. Tell your lender exactly what you need the loan for, and your plan to pay it back. If you have a backup plan in case of unforeseen circumstances, even better.
Be organised and professional. Predict what questions you would ask someone who was borrowing from you, and have those answers memorised. As a backup, have everything in a binder so it can be quickly looked up and shown to the decision maker. If you are detailed, organised, and informed regarding your business plan, chances are you run your business the same way – your banker will know that.
Include bank statements, tax returns, customer testimonials and feedback (including negative ones and how you plan to improve in those areas).
Finally, practice describing your business and why it will be successful – in about thirty seconds. Say it over and over again until it is automatic, then practise making it sound more natural. Use a mirror. Record it. It’s a presentation, so treat it like a performance. Don’t act like a “know-it-all”… but know it all.
Step 3: Don’t rush things, compare lots of deals
Know what’s available to you, both from the lenders you’re talking to and their competition. Memorise the going rates, and be aware of the expected trends in interest rates. During the time you spend improving your personal credit rating, study business lending and the current market.
If a lender’s rates are higher than you expected, tell them so, and ask them what it is about their product that makes it worth the extra. They may be impressed both with your knowledge and your willingness to consider not just price, but value. They’re betting on your business acumen, after all, so show them some.
Step 4: Focus on the right type of loans
Small lenders can’t usually handle large loans to large companies, so they focus on small businesses. If this is you, then you’ll probably have more success at a smaller lender than with one of the large banks that deal with multi-billion-dollar companies.
If you have a history of good business, however, and can demonstrate stability and regular profits sufficient to cover the loan, then you may find better rates at a bigger bank than you would at a smaller one, or from an alternate lender.
Find out about lenders who have experience in your area of the market. If there is a lender who has financed a construction firm before, then they are already aware of the industry and have shown willingness to take a risk on it. Your chances of a loan with them may be better than with a lender who would be taking a shot in the dark, or who would need to research the market to catch up to what you’re presenting to them.
When you’re looking for the right source of a loan, consider the amount they are willing to lend, whether or not they provide clear eligibility guidelines, the APRs on offer, flexibility of terms, lots of clear information on their website (though many larger banks are lacking in this regard), and the reputation of the lender.
Armed with knowledge, research, a practiced pitch and a great business idea, you’ve done your part to gain the best chance of a successful loan application.