Have you been considering financing to purchase a business or perhaps to grow your present one? A lot goes into securing a Small Business Administration (SBA) loan. However, approved borrowers can get their financing faster by taking a few proactive steps:
- Have your historical and current financials ready – along with your seller’s – and be sure to keep them current as the process progresses.
- When your lender asks a question or requests a document, be prompt and thorough in your response.
- Know your numbers and be ready to answer questions. Understand the seller’s historical situation, project performance once you take over and write assumptions behind changes from the historical to future state.
- Take your time and write a good business plan that addresses all of the transaction’s basics and unique qualities. Focus on employees, suppliers, vendors and customers.
- Start with the end in mind. For example, most SBA loans require life insurance, so get started early; that way, acquiring coverage won’t delay the process.
- Talk to your lender and ask questions. They can be a great resource.
- Be patient: when the lender seeks information, it is to make sure that this is a good transaction for both parties.
The First Internet Bank SBA lending team can help you navigate the loan process and, with our Preferred Lender status, get loans closed quickly, due to our ability to approve and process them internally. Ready to take that next step? Let’s talk!
