If you are thinking of expanding your business or starting anew, it is essential that you become a pre-qualified borrower. A pre-qualified loan is different from a pre-approved loan. A pre-qualified loan states that you may be eligible for a set amount for the loan. By pre-qualifying, you prove to investors and lenders that your business has a strong foundation.

A pre-qualified loan consultant helps build your business's credit by giving you pre-qualified loan advice. Finding out what information you will have to provide will expedite the qualification process. By becoming a prequalified borrower, you can get credit for your business right from the start and can use this credit to purchase the equipment and inventory you need to run your company. Follow the list bellow to become a pre-qualified borrower.

1. Build your business credit to help meet pre-qualified loan requirements.

2. Understand what's needed to get a pre-qualified loan.

3. Find a lender to help with your loan pre-qualification.

Action Steps
The best contacts and resources to help you get it done

Build your business credit to get a pre-qualified loan

It's a vicious cycle. You need to show good credit before you even have credit. In order to become a pre-qualified borrower, you need to prove that you are credit-worthy. It helps if your business and personal credit is in good shape because lenders want to see how you handle business and personal financial decisions.

I recommend: Get a copy of your credit report for free at AnnualCreditReport.com. The Federal Reserve provides a guide about credit for small businesses. If you are worried about building credit on your own, consider hiring a service such as BusinessFinance.com to help grow your business credit.

Know what you need to attain a pre-approved loan

Finding out what information you need to get prequalified for a loan makes the process move faster and without complications or surprises. This information may vary by lender, however most lenders request the same type of information.

I recommend: MortgageNewsDaily.com provides a detailed list of the information you need to gather when applying for pre-qualified loans. Mortgage Trust Group informs you of what is involved and what you need to be a pre-qualified borrower. Visit Streetdirectory.com to read information about what information you need to provide for a pre-qualified Loan.

Find a lender to help you become a pre-qualified borrower

Once your credit looks good and you know what you need to get a pre-qualified loan, it's time to find a lender. The trick is to find a lender to prequalify you for the total amount you need. There are several Internet services that help business owners pair up with appropriate lenders.

I recommend: Compare what kind of credit you can get from different prequalification sources such as MerchantLoans.com. Initial Lending Group allows you to view available pre-qualified lenders' interest rates and pre-qualified loan information. Moxy Media supplies pre-qualified mortgage information about a variety of loan companies.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Try to find SBA loan pre-qualification. This is the gold standard for most businesses. If approved, you should have no trouble securing the money you need for your business.
• •  Ask your local bank for pre-qualification. You may have an easier time getting approval for your business loan from people who know your town and understand the need for your business.