As you prepare to work on your upcoming business project, ensure you secure adequate funding beforehand. Applying for a small business loan from private money lenders is one of the best ways to fund your upcoming project. However, you have to make many critical decisions along the way.
In this blog, we’ll focus on one of the most important questions: which business loan terms are right for your project? If you’re confused, our loan agents will provide more clarity in this blog. Keep reading.
1. Understand Your Requirements
Before you start consulting loan agencies, make sure you understand your requirements to a tee. How much funding do you require? And how long will it take to repay the amount?
Be realistic. Many businesses make the mistake of overestimating their revenue growth. While being optimistic is important, you shouldn’t have unrealistic expectations. As you understand your unique requirements and get a good grasp of the progress you will make after launching your project, you’ll develop a better idea of the ideal terms.
These vary from business to business. Ideally, you should pay your loan off within 18 months. Short-term loans have lower interest payments. They’re less risky, so you’ll receive them quickly. If you’re launching an urgent project, opt for a short-term loan.
2. Origination and Processing Fees
When deciding the terms, many businesses fail to ask about the origination and processing fees. These are included in the terms and must be communicated to you.
Find a business loan provider that doesn’t deduct origination and processing fees. This should be discussed and decided beforehand. If you overlook this detail, your provider will charge hidden fees.
Once the contract is signed, there’s little to nothing you can do. Read the fine print, get verbal communication on paper, and make a smart decision for your business.
Recommended: FAQs About Small Business Loans
3. Request Flexibility
Your business loan package should be flexible, not rigid. If your provider is unwilling to customize the plan based on your unique requirements, consider switching loan agencies.
Everything from the loan amount to the terms to the repayment timeline must be decided based on what you need. If you require more clarity, consult small business assistance specialists beforehand. They’ll steer you in the right direction.
Are you considering taking out a small business loan? At Whitestone Fund, our business loan agents start by understanding each client’s unique requirements. Based on our analysis, we steer you in the right direction accordingly.
Which business loan terms are right for your project? What’s the right loan amount based on your expected revenue generation? What is the ideal repayment schedule? We assist our clients with each of these critical decisions to ensure a smooth outcome.
Our repayment timeline is generally 6–18 months with weekly or daily payments. We don’t deduct any origination or processing fees. Our loans range between $5,000 and $500,000 and our cash advances are up to $1,500,000.
Find out more about our business loans and merchant cash advances. When you’re ready, submit an online application. We create flexible, individualized loan packages for clients across New York.