As an entrepreneur or small business owner, it may be worthwhile to research small business loan financing options. There are many benefits to improving cash on hand: paying down existing debt, purchasing an additional company vehicle, refining existing systems, or simply paying bills.

Having the necessary capital can help your business reach a new milestone. Perhaps customers have been asking for a new service? Maybe you need to make a strategic pivot due to economic conditions? Or it might be time to finally upgrade existing capital necessary for operation?

Those with experience operating a small business know that a credit card can be an essential tool to make all this happen—but the interest rate on a credit card can be substantial.

A small business loan can offer a significant cost savings. This is one of the most compelling reasons why a small business loan is preferable to most other financing options. While the application process can be complex, the added value and cost savings from a small business loan is likely to outweigh the resources required up front.

There are several key points to know before applying for a small business loan. Here are a few of the most important to consider:

1. Credit score – A potential lender is going to look at not only the credit score of your business, but also your personal credit score.  There is no hard-and-fast number that guarantees acceptance, though generally a score of at least 700 may be required.  No matter the number though, it’s a good idea to review a credit report from one of the major bureaus to find areas that you could fix or improve. 
2. Revenue – Lenders will want to see cash flow data from prior years as well as future projections.  If you’re new, make sure to let the lender know about your previous experience in related industries and/or business know-how.
3. Paperwork – Lenders will want to review your business plan, bank statements, loan history, income taxes, and more.  Most will have the requirements posted on their website. Have your documentation ready to go to make the process as painless as possible.

 
We help local business owners by posting clear requirements on our website, how to apply, who to call for questions, and the term benefits like loans up to $50,000 with a 90-day grace period for repayments.  We also offer business credit cards and checking accounts, plus a referral network of related businesses to help with a variety of needs. If you have a question or just want to chat about your options, give us a call or visit our website.   
 

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Excite Credit Union is a small, community-based cooperative that only serves two major markets, San Jose, California and Wilmington, North Carolina. As a nonprofit that is fully owned by the membership, Excite Credit Union is often able to offer lower rates and fees than most competing financial institutions, in addition to providing access to 30,000 fee-free ATMs. Choosing Excite Credit Union as a financial partner ensures access to loans and credit cards with lower fees, savings products with higher returns and a positive impact on the local community.
 
Sarah Stone is the Director of Retail Experience for Excite Credit Union in North Carolina, overseeing retail branches, business development, and community relations. Sarah has worked in credit unions over the past decade. In late 2019, she moved to Wilmington and joined the Excite team. She is passionate about the work Excite Credit Union does in the Cape Fear Region.