Many businesses in NYC require loans to maintain or increase their operations, keep up with the industry demands, and get ahead of the competition. The loan application process can be intimidating, especially if you’re new in the industry or don’t have the perfect credit score. However, private business loans are much more lenient and flexible.
Our loan providers in NYC have prepared this guide to help you with your business loan application.
Determining the Right Loan Type
The first step of the application process involves understanding the different kinds of loans available and choosing the right one. Private lenders offer a wide variety of loans, depending on the business’s needs, affordability, and other factors.
You can choose from a term loan, merchant cash advance, business line of credit, or working capital loan. Before choosing the loan type, you should also see which type you qualify for.
Gathering Necessary Documentation
The next and most important step is to gather the necessary documents so you have everything ready when your lender asks for them. Many loan applications get rejected due to a lack of documentation; make sure you don’t make this mistake.
Some common documents that lenders require include:
- Business plan
- Ownership proof
- Bank statements
- Financial statements
- Tax returns
- Accounts receivables report
A business plan is an important document required for each type of loan. It details why you need the money you’re borrowing, how much return it will bring for your business, your company’s vision, future goals, and how you will repay the amount. This document is critical for small and new companies without a good trading history or a solid credit score. While a traditional bank requires the perfect credit score and cash flow history, private lenders are more lenient. They’re interested in your ability to pay back as well as your business’s continued success.
Moreover, depending on your loan type and lender, you may need to provide financial documents for your personal finances.
Signing a Personal Guarantee
Sometimes, lenders also require the borrower to sign a personal guarantee document. It’s an agreement that the borrower is responsible for repaying the loan with their personal assets if your business fails to do so. You and other company owners will need to sign this document before applying for the loan.
Submitting the Application
Once you take care of all prerequisites, it’s time to fill out the business loan application. Some private lenders will require you to apply online, while others may ask you to apply at their office. Before you submit your application, make sure to double-check it. You can also ask our loan agents to help you apply for a loan and fill out the required application. Doing this will eliminate any potential mistakes that can result in loan rejection.
At Whitestone Fund, we offer various loan services to businesses, including fast-working capital loans in NYC, LOC financing, merchant cash advances, and more. Our loan providers in NYC are reliable and experienced, ensuring all your needs are met. Contact us for more details.