Many businesses utilize loans when a cash-flow shortage comes up. If you are new to running a small business,
you may have questions about obtaining a loan. The following frequently asked questions may be useful to you.
Does personal or business creditworthiness factor into obtaining a loan?
Absolutely! Banks will want to know your credit rating. Additionally, if your business has a credit history, they will want to know about that as well.
Working with Banks
Is it difficult to obtain a loan from banks?
Some banks are more difficult to work with than others. In all cases, they tend to scrutinize your finances in some detail. YOu may be denied a loan from a bank. Even if you obtain one, it can take a long time for a bank to make a decision.
How do loans actually work?
Loans involve the lending of money with must be paid back with interest. Basically, there are two factors about any loan that you will want to know: the term and the interest rate charged. The loan term can be as short as a few months to as long as several decades; the loan must be paid back in full by the end of the term. The interest rate associated with the loan is the cost of financing that you pay the bank when you obtain the loan.
Are there other ways to finance a small business?
Yes. A number of other sources for business loans and alternative financing are available to you. Capital lending groups, in particular, offer a variety of alternative financing solutions and can deliver funding more quickly than most banks.
Connect with Dorra Financial Group
Here at Dorra Financial Group, we are sure that we have a commercial finance solution or other small business loan product that will be perfect for your business needs. Give us a call today.