As a business owner, you’re not just a visionary; you’re a strategist with the ability to turn ideas into profitable ventures. But, as you know, ambition alone won’t fuel your journey to success. You also need financial backing to bring your vision to life. That’s where a small business loan comes in.
Not all business loans are created equal, and you’ll need to meet eligibility requirements to qualify. But with BHG Financial’s tailored financing solutions, you can access business loans up to $500K1,2 and enjoy flexible and affordable repayment terms spanning up to 12 years.1
Small business loans are designed to align with your goals and propel your business forward. And understanding the process of applying for a business loan puts you on the path to start building, acquiring, or expanding your business.
Summing Up: How to Get a Small Business Loan
- Accessing a small business loan is vital for supporting various aspects of your business, from working capital to expansion, offering crucial financing tailored to your goals.
- With BHG Financial, you can secure business loans up to $500K1,2 with flexible terms designed to align with your specific business needs and propel your growth initiatives forward.
- Applying for a small business loan involves checking eligibility based on factors like credit score and income and collecting relevant documentation.
Why apply for a business loan?
A business loan is vital for supporting various aspects of your small business, whether you’re just starting out, maintaining operations, or seeking expansion. Applying for a business loan can help in achieving several key business goals:
- Debt Consolidation: If you’re burdened with multiple high-interest debts, a debt consolidation business loan can be a financial solution. Consolidating your debts into a single, affordable loan can simplify your financial management and potentially reduce your overall interest rate. This can provide financial control, improving your cash flow and freeing up your time and energy to grow your business.
- Expand Operations: Business growth can manifest in different ways, such as hiring additional staff, renovating or relocating to larger premises, or diversifying your product or service offerings to tap into new markets. However, realizing these expansion plans requires financial investment. A working capital loan can provide the necessary capital to fuel your growth initiatives, enabling you to seize opportunities and propel your business forward
- Seize New Opportunities: Business expansion or diversification opportunities often present themselves when you least expect them. Whether you’re acquiring another company or buying out a business partner, these opportunities can be game changers for your business. A business acquisition loan can provide the financial agility to capitalize on these prospects quickly and decisively, positioning your business for long-term success.
Getting a small business loan
Navigating the path to securing a small business loan may be easier than you think. With the right guidance, you can confidently move forward in getting the right financing to support your business goals.
Decide if taking a loan is feasible
Considering any form of debt is a significant step for your business, even if it’s for fueling rapid growth. As you begin to consider a loan, it’s crucial to delve into the numbers, figure out if a loan aligns with your business’s goals, calculate the right amount needed, and devise a clear repayment strategy.
When you reach out to BHG Financial, rest assured that our dedicated team will help you every step of the way, offering concierge service to tailor a financial solution for your business’s distinctive needs.
Consider your eligibility
Eligibility for a small business loan is based on several factors, including:
- Credit Score: If you’re a new business owner and you don’t have an existing business credit score, your personal credit score may be considered. Credit scores over 660 may help you secure the best rates.
- Income: For new businesses that may have low revenue, BHG Financial considers personal and business income when making a loan decision. That means you may qualify for a small business loan even if your business isn’t meeting its full earning potential yet.
Collect relevant documentation
Before diving into the loan application process, it’s time to gather your paperwork and get organized. Here’s what you’ll need:
- Business Specifics: Alongside the basics, like your business’s name, address, and EIN, some lenders might ask for a comprehensive business plan or a thorough proposal outlining your precise plans for utilizing the loan funds. If you’ve already put in the groundwork, you should have these details at your fingertips.
- Income Verification: Be prepared to validate your income by providing tax returns and bank statements, not just for your business but also for yourself as an individual. This documentation helps lenders assess your financial stability and repayment capacity.
Apply for the loan
When it comes to applying for a loan, the choice is yours: you can opt for the convenience of an online application, completing it in just a few minutes from the comfort of your own space, or you can connect with one of our seasoned loan specialists over the phone for personalized guidance every step of the way. Whichever route you decide on, rest assured that you’ll be asked for the same information and documentation to ensure a smooth and efficient application process.
Use your funds
Once you receive approval for your loan, it’s time to put your funds to work for you. If your goal was to acquire an existing business, this is your moment to finalize the acquisition and kickstart the process of seamlessly integrating it into your existing operations. Beyond acquisitions, if you’ve secured the loan for other purposes, such as expanding your services, upgrading equipment, or boosting working capital, now’s the time to implement those plans. Whether it’s investing in new technology, hiring additional staff, or ramping up marketing efforts, this influx of capital opens up a world of possibilities for advancing your business’s growth and success.
Why it pays to use BHG Financial for your small business loan
When considering a small business loan, choosing BHG Financial can be a strategic advantage. With loans up to $500,0001,2 and repayment terms of up to 12 years1, you can efficiently pay off debt or invest in your business while enjoying affordable monthly payments.
Our tailored financial solutions and expedited funding process ensure that you receive the support when you need it most, backed by our dedicated concierge service. Start your journey towards business growth by exploring your estimated monthly payment today.
Applying for and getting a small business loan FAQs
What credit score do I need to get a small business loan?
BHG Financial considers other factors in addition to credit score; however, our typical business loan customer has a credit score of over 700.
How do you get a business loan for a business you just started?
With BHG Financial, there is no minimum requirement for the number of years in business, meaning you may be eligible for a loan for a business you just started.
Is it hard to get a loan for a small business?
It may be hard to get a loan for a small business if you have subpar credit or income. However, business owners with great credit scores and strong incomes typically qualify for a loan more easily.
How much money can I realistically get for a small business loan?
Depending on your credit profile, state of residence, and other factors, you may qualify for small business loans up to $500K1,2 with BHG Financial.
How long do you have to wait to get a small business loan?
The time to process and fund a loan application varies by lender. At BHG Financial, we may be able to approve your loan request in as little as 24 hours3 with funding in as few as three days3.
1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile. Finance amount may vary depending on the applicant's state of residence.
2 BHG Financial business loans typically range from $20,000 to $250,000; however, well-qualified borrowers may be eligible for business loans up to $500,000.
3This is not a guaranteed offer of credit and is subject to credit approval.
Business Loan Repayment Example: A $94,695 commercial loan with a 9-year term and an APR of 14.8% would require monthly payments of $1,633.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.
IMPORTANT INFORMATION ABOUT ESTABLISHING A NEW CUSTOMER RELATIONSHIP To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies every customer. What this means for you: When you apply for a loan, we will ask for your name, address, date of birth, social security number and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. If all required documentation is not provided, we may be unable to establish a customer relationship with you.
