31Top Tips to Get Business Loan form US Bank

Get Business Loan form US Bank: At one point or another, most businesses need more money.

Maybe you are funding an expansion or buying new equipment.

Whatever the reason, you should identify lenders and approach them about getting a loan.

Business loans are often made based on your business and personal credit history.

So make sure both are as good as possible.

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Get Business Loan form US Bank

1. Calculate how much you need.

As best you can, estimate the amount of money you will need.

Most businesses don’t ask for enough. At the same time, you don’t want to ask for too much.

For example, if you are building a new retail space, ask the contractor for estimates of how much labor and materials will cost.
You will also need to cover the cost of moving into your new space, so get estimates from movers.

2. Create financial statements.

You should create a profit and loss statement, balance sheet, and a cash flow statement, which lenders will want to see. If you need help, consult with an accountant.

Every owner who owns at least 20% of the business should also create a personal financial statement.

Get Business Loan form US Bank

3. Collect other documents.

You’ll need to submit a lot of paperwork when you apply for a loan, so gather it ahead of time.

4. Get the following:

An updated resume
Personal tax returns for the past three years
Business tax returns for the past three years
Recent personal and business bank statements
Articles of Incorporation or Organization
Business leases
Franchise agreement, if applicable

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5. Determine what type of loan you need.

Lenders don’t give loans without asking detailed questions.

For example, they want to know what you will spend the money on. Consider why you need the loan:

You want to expand your business. Typically, you will get a term loan, which is a lump sum that you pay back in installments.
You want to relocate your business. You’ll probably get a term loan.
You want to buy equipment. You will get an equipment loan, which is secured by the equipment itself.
You need money for day-to-day expenses, such as payroll or rent. You will probably get a line of credit or accounts receivable financing.

6. Write a business plan.

A lender must thoroughly understand your business, so you should write a business plan if you don’t already have one.

You can stop into a Small Business Development Center if you need help.

Find your nearest office at https://www.sba.gov/tools/local-assistance/sbdc.

Your business plan should be quite detailed. Look at sample business plans online.
Generally, they include sections on your financial needs, target market, marketing plan, financial projections, management, and operations.
Some lenders want to see specific information. You can stop into a bank ahead of time to ask.

7. Review your business credit score.

Three agencies gather business credit information: Dun & Bradstreet, Experian, and Equifax.

You will have to buy your business credit scores from each of these three agencies.

Since you never know which one lenders will look at, you should get reports from all three.
Call the credit bureaus to update any missing or erroneous information from your business credit report.

Get Business Loan form US Bank

8. Check your personal credit score.

Lenders will analyze your personal credit score when deciding whether to lend to your business.

Obtain a copy of your score so you see where you stand. You’ll need a score above 650, with a score over 700 preferable.

You can pay for your FICO score at myfico.com.
But you can also get it for free at websites such as Credit.com.

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9. Improve your credit history.

Your credit score might be too low to qualify for a business loan.

If you need to, commit to improving your credit history before you approach lenders.

There might be errors in your credit report.
For example, an account might wrongly be listed as in default, or the wrong balance amount might have been reported. You should dispute any errors on your credit report.
It will probably take at least 60 days to correct any mistakes.
The only surefire way to increase your score is to pay down high-interest debt, such as credit card debt.

10. Make a budget and stick to it.

It will take several months to improve your score.

Although the improvement will depend on how much debt you have.

Other strategies for improving your credit score carry risks.
For example, people with more available credit generally have higher scores.
However, you probably shouldn’t open a new credit card just to increase your amount of available credit.
Avoid closing unused credit cards, which will only hurt your score.

Get Business Loan form US Bank

11. Find collateral to pledge.

Many lenders will want you to pledge assets as a security for the loan.

This means that if you default on the loan, the lender can seize the assets.

Vehicles, inventory, heavy equipment, and accounts receivable are common forms of collateral.

Draft a list of potential collateral and note its location as well as its current value.
Don’t be surprised if lenders require that you put your house up as collateral.
It’s probably your largest asset.

12. Research SBA loans.

In the country, the Small Business Administration (SBA) guarantees business loans.

You still get the loan from a bank, but the SBA will step in and pay back some of the loan if you default.

Because of this guarantee, SBA-backed loans have favorable interest rates.

13. Ask about the following loans:

General Small Business Loans: 7(a). This is the most popular SBA loan program, and loans can be used for almost any purpose. For example, you can use the loan to buy a business or expand an existing one.
However, you can’t use a 7(a) loan to refinance existing debt or reimburse an owner for expenses.
Microloans. You can get up to $50,000 at an interest rate of 8-13%.
You can use micro loans for a variety of purposes, such as to buy machinery or equipment, or to purchase inventory and supplies.
Real Estate and Equipment Loans. You can use these loans to buy machinery or equipment, or to buy land. You can also use these loans to renovate your facilities.

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14. Contact banks and credit unions.

Banks might be willing to lend, even if you don’t qualify for an SBA-backed loan.

Stop into nearby banks and discuss your options.

Many lenders will expect that your loan be secured, so take your list of possible collateral with you.

If you’re looking for a small business loan, then a credit union might be a better choice.
They specialize in smaller business loans.

Get Business Loan form US Bank

15. Research online lenders.

Lending options have increased recently, and you no longer need to rely solely on brick-and-mortar lenders.

There are many online lenders today.

However, they might be less willing to lend to start-up companies.

Popular online lenders include Street Shares, Kabbage, and Fundbox.
Each has different lending standards, interest rates, and repayment periods.
You should shop around to find competitive offers.
Look out for scams. Avoid paying huge up-front processing fees or borrowing from any lender who claims not to care about your credit score.
Check with the Better Business Bureau to see if any complaints have been lodged against the company.^X

Get Business Loan form US Bank

16. Ask family and friends for a loan.

People who know you might be willing to lend your business money.

Especially if you aren’t asking for a lot of money.

Approach them as you would a bank.

Give them a copy of your business plan and explain what you hope to use the money for.

If someone agrees to make the loan, then put the terms in writing by drafting a promissory note.
You can also offer to pay interest, which shows you are serious about making your business successful.
Your family should charge at least the applicable federal rate, which you can find at the IRS website: https://apps.irs.gov/app/picklist/list/federalRates.html.
However, if they want to charge more, make sure they don’t go over your state’s maximum interest rate, which you can find online.

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Get Business Loan form US Bank

17. Complete an application.

Apply to one lender at a time since every lender will pull your credit report.

Each pull dings your credit, so there’s no reason to have more credit pulls than necessary.

Each lender’s application might be slightly different, but you typically must provide the following:

Your reasons for applying for the loan.
How you will use the loan.
The identify of any suppliers you will be buying assets from.
How much other business debt you have, and the identity of your creditors.
The members of your management team.
Information about your personal background.

18. Wait for the results.

The lender should make a decision within two to four weeks.

You can call once a week to check for an update.

If the lender needs additional documentation, provide it in a timely manner.

Don’t be surprised if the bank turns you down.
About 80% of applications for small business loans are rejected.
If you’re rejected, ask the lender why.
For example, you might need to rewrite your business plan or save more money.

Get Business Loan form US Bank

19. Review the terms of the loan.

If approved, you should receive a term sheet from the lender.

Make sure you are comfortable with the terms of the loan—the repayment period.

Annual percentage rate (APR), and possible prepayment penalties.

20. Apply with another lender.

If your first lender turns you down, move on to a different bank or credit union and start the application process over.

You can also consider other forms of financing, such as using a business credit card or tapping your retirement savings.

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21. Get Business Loan form US Bank

Lenders will review your social media accounts as part of the lending process.

You should probably set them to private since it is impossible to know what they might find questionable.
If you can’t find a loan, consider crowdfunding.
Popular crowdfunding sites include Kickstarter and Indiegogo.
You write up a description of your business idea or project.
And people can contribute money to help you achieve your goal.

Ways to Get Business Loan form US Bank:

Getting a business loan from a US bank involves several steps and considerations. Here’s a general outline of the process:

22. Determine Your Needs:

Understand how much funding you require and what you’ll use it for. Having a clear business plan and financial projections will be crucial.

23. Research Banks:

Explore different banks and financial institutions that offer business loans. Consider factors such as interest rates, repayment terms, and customer service.

24. Check Eligibility:

Each bank will have its own eligibility criteria for business loans. Typically, they’ll look at your credit score, business history, revenue, and other financial factors.

25. Prepare Documentation:

Gather all necessary documents, which may include:

- Business plan
- Financial statements (income statement, balance sheet, cash flow statement)
- Tax returns
- Business licenses and permits
- Collateral documentation (if applicable)
- Personal financial statements

26. Apply for the Loan:

Contact the bank or apply online for the business loan. You’ll need to fill out an application and provide the required documentation. Some banks may also require a personal guarantee from business owners.

27. Wait for Approval:

The bank will review your application, credit history, and financial documents. This process may take some time, so be patient.

28. Negotiate Terms:

If approved, carefully review the loan terms and negotiate if necessary. Pay attention to interest rates, repayment schedules, fees, and any other conditions.

29. Sign the Loan Agreement:

Once you’re satisfied with the terms, sign the loan agreement provided by the bank.

30. Receive Funds:

After signing the agreement, the funds will be disbursed to your business account. Be sure to use the funds according to your business plan.

31. Repay the Loan:

Make timely payments according to the agreed-upon schedule. Staying current on your loan payments will help maintain a positive relationship with the bank and preserve your creditworthiness.

Remember to compare offers from multiple banks to ensure you’re getting the best possible terms for your business loan. Additionally, consider seeking advice from financial advisors or consultants to help guide you through the process.

Conclusion

U.S. Bank is a well-known financial institution with a robust business lending program.

Its loan options are best for established businesses with an annual revenue of at least $100,000 and at least two years in business.

But if you’re looking for an online application or transparent rates online, it’s not the best choice.

You’ll need to reach out to a U.S. Bank representative over the phone or at a branch to learn more about your options.

Get Business Loan form US Bank

1. Calculate how much you need.

2. Create financial statements.

Get Business Loan form US Bank

3. Collect other documents.

4. Get the following:

5. Determine what type of loan you need.

6. Write a business plan.

7. Review your business credit score.

Get Business Loan form US Bank

8. Check your personal credit score.

9. Improve your credit history.

10. Make a budget and stick to it.

Get Business Loan form US Bank

11. Find collateral to pledge.

12. Research SBA loans.

13. Ask about the following loans:

14. Contact banks and credit unions.

Get Business Loan form US Bank

15. Research online lenders.

Get Business Loan form US Bank

16. Ask family and friends for a loan.

Get Business Loan form US Bank

17. Complete an application.

18. Wait for the results.

Get Business Loan form US Bank

19. Review the terms of the loan.

20. Apply with another lender.

21. Get Business Loan form US Bank

Ways to Get Business Loan form US Bank:

22. Determine Your Needs:

23. Research Banks:

24. Check Eligibility:

25. Prepare Documentation:

26. Apply for the Loan:

27. Wait for Approval:

28. Negotiate Terms:

29. Sign the Loan Agreement:

30. Receive Funds:

31. Repay the Loan:

Conclusion

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