what do I need to provide to qualify for a personal or small business bank loan?
I am fairly new in the u.s here, will need some loan to do stuff, what are the requirement to qualify for such loans. I would gladly like to have an idea what the interest rate on such loans are for my planning. Bank want a one on one discussion on this issue but my work schedule is so tight, unable to visit at this time.Can somebody share?Great ideas are welcome. Thanks.
Some banks extend what they call “small business lines of credit” often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000.
For example, Wachovia’s has various business lines of credits http://www.wachovia.com/small_biz/page/0,,446_612_1399,00.html Their business line of credit can even be approved overnight,
However, if you’re applying for a loan and if it is a big amount, banks and even the SBA may consider other factors aside from your business credit:
- A business plan explaining what the business is
- Your background and experience in the business — in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don’t have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you
- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application
- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you
- Condition or terms of loans. Banks would want to know three important things: “How much money are you requesting? What will it be used for? and For how long will it be needed?” Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.
- Equity investment as banks want to see you invested in the business as well (they wont give you the full amount you need)
Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/microloans.html and you can find SBA Accredited Microloan Providers here http://www.powerhomebiz.com/vol145/microloanproviders.htm
Do you need good credit to get approved for a first time loan?
I’m Alex and I’m 20 with good credit history. I make my payments on time so I assume I have good credit. Anyway, here’s my question I applied at Banner Bank for my first loan for a total of $900.00, what are my chances of getting approved? I have a total of 3 credit cards, I always pay my bills on time. This is my first loan ever, and they haven’t contacted me yet with a decision. What are my chances of getting approved for this loan, I need the money for a personal use. Will I or will not get approved, what are my chances? Only serious answers please, I need the money. Thanks for your answers everyone. I have an account with Banner Bank. Also, if I don’t get approved what would you recommend as for applying somewhere else for such loan? It’s been almost a week and they haven’t called me back with a decision.
You’re credit is great, and if its the only factor, you will get it…
Here’s the problem. A loan for $900 is considered a “convenience loan,” and if its a bank you have no relationship with, I’m afraid they won’t help you out.
If they say no, call one of your credit card companies and ask about a “convenience check” and if you need it, an increase in the line of credit so you can hit your $900.
Before you write the check (they may send in mail), pay off your balance on the card and don’t use that card anymore. Keep only the $900 you wrote.