Large and small-scale businesses can both benefit from additional working capital. But the question to ask yourself is… “Is my business ready to take on a business loan?”
Even if you think your business does not need financing any time soon, you might still be in the perfect position to apply for small business loans NYC.
When is the Perfect Time to Apply for Small Business Loans NYC?
If you’re not sure whether your business is ready to take on a business loan, here are three tips that can help you decide.
1. Your credit score has improved significantly.
Having a good personal credit score is one of the factors potential lenders take into consideration when it comes to loan applications. If your personal credit score has improved significantly in the past few years, then you might qualify for a business loan with better rates and terms.
Every time your credit score changes, it’s worth checking whether you are eligible for a loan or not. If your personal credit score reaches 700 or more, there’s a huge possibility that you might be able to refinance your business loan with competitive terms and interest rates.
2. You’ve spent two or more years in your business
It’s worth noting that as part of the application process, a potential lender wants to be able to predict whether your business is in it for the long haul. They also want to know how you will manage cash flow. Lenders eligibility usually overlook young businesses when it comes to small business loan eligibility, making it especially difficult for start-up companies to qualify for a loan.
When your business reaches its two-year anniversary or more, this can significantly affect your eligibility for a loan. If you were funded with a high-interest startup loan, a two-year milestone may be a good time to refinance your loan.
3. The off-season is right around the corner
The best time to apply for a small business loan is when you don’t need one. In fact, it’s better for seasonal businesses to apply for loans during their busier seasons. While it’s hard to see past your current success, it’s important to think of the future – particularly an off-season. You can prepare for the upcoming off-season by applying for a small business loan beforehand.
Small business loans help you bridge cash flow gaps during slower seasons in your operation. Don’t wait to apply for a business loan when your expenses are high and your cash reserves are low. As a matter of fact, lenders favor a business that just experienced a profitable period.
While the loan requirements vary from lender to lender, a common requirement between all lenders is, they ask for cash flow and expense forecast statements. These documents help them understand your business. Even if your business is experiencing a profitable season, it’s best to gather the documents needed and apply for a small business loan when your business is booming.
Small business loans NYC help small businesses grow and expand. If you desire to discover the details as they relate to the funding options available for your business, SMB Compass are the experts who can help you. Our team of finance professionals are available seven days a week to answer your specific questions. Why not call us now at 888-853-8922 or email us today at email@example.com?