When you’re applying for a business loan for your start-up, there are a few things you should consider. Any old loan may not necessarily be right for your business, and it isn’t all about costs – so what should you be looking out for? Read on to find out.
How Much Will It Cost?
You probably already have a figure in mind for how much you need to borrow, but how much will it cost you altogether? Business loans come with different interest rates, so you’ll need to shop around to find a loan that suits you. Don’t forget about arrangement fees, which may or may not be absorbed into the total cost of the loan. Check for hidden fees before singing on the dotted line. You may also need to secure your loan with an asset such as property or a vehicle.
What Is Their Customer Service Like?
Low rates aren’t the only reason to go with a lender. A good lender understands your business, is open and honest when answering your questions, and remains professional at all times. Will you be able to speak to someone if you need to amend your repayment plan, and is the company lenient or flexible when it comes to making these changes or late payments?
How Long Will Your Repayment Term Be?
How long will you need your loan for, and on what basis can you pay it off? Find a lender who will fit in with your long-term plans. It may be that you only need a short-term loan, but if you need a larger amount you might need to pay it off over a longer period with lower monthly payments.
How Quickly Can You Get The Loan?
While alternative lenders can provide you with a loan in a couple of days, banks can take weeks to approve you (or not) for a loan. Consider whether you are happy to wait or if your business needs a cash injection sooner than this.
If you would like any professional assistance with writing a business plan that will help you to secure a loan, get in touch with cbm. Contact us online using the form on the right or call 01604 420 420.