Applying for a Pre-Approved Loan

Get a pre-approved loan to start or expand your business
By Maria St. Louis-Sanchez If you are thinking of starting a business or expanding an existing venture, it is essential that you get a pre-approved loan application. Unfortunately convincing lenders to part with their money on your business dream can be a daunting process at times and a pre-approved loan consultant may be your best resource to help get the funding you need.
 

The problem with starting or expanding your business is that you often need money to make money. This is where prequalification can help you out. By becoming a preapproved borrower, you can get credit for your business right from the start. You can use this credit to:

1. Buy the necessary items to stock your business inventory.

2. Purchase the equipment you will need to run your company.

3. Get a preapproved mortgage to buy or expand your existing business property.

Get pre-approved loan training from local business associations

Local small business associations are a gold mine of information for potential business owners. A pre-approved loan consultant from these organizations will know the tricks of the trade and can help you work with your borrower to get the money you will need to succeed.
Try: Visit your local Small Business Administration for help with pre-approved loan processes. You may even be able to get the SBA to be a guarantor on your loan which will help with your pre-approval. The Venture Alliance offers a business fundability test which will outline how your business pitch will look to investors.

Write a top-notch business plan to help you become a pre-approved borrower

Before you can convince any lender to give you money, you will need to have a solid business plan that will show how your business will flourish and prove that you will repay the loan. Make sure that you give accurate financial statements and prove your potential as a business owner.
Try: Use software such as Business Plan Pro to help you write your business plan. You can review examples of business plans at BPlans.com or get help with financial statements at Baruch College's Guide to Financial Statements.

Find a bank that will give you pre-qualification for a loan

Once you've got all of your ducks in a row, its time to go out and ask for money. Look for lenders that will match your business needs and be able to give you the full funding that you require. There are several online services that will help match you to the right lender.
Try: At BuyerZone, you can enter your business information and interested lenders can contact you directly. Also, BusinessFinance.com can help match your business to a lender that will meet your needs.

• Before you get prequalification, know how much money you will need for your business. Many companies go under because they borrow too much or they don't have adequate funding from the start.
• Make sure your personal credit is in stellar shape before you attempt to secure pre-qualification. Lenders will look at your personal financial history as a reflection of how your business will fare.