How to Make Applying for Working Capital Easier
If you are looking to grow or improve your business and are considering a merchant cash advance or small business loan, chances are you want a quick and efficient process. If applying seems daunting, let us ease your mind with these easy tips on following working capital requirements. Find out how to get capital for a small business, and you’ll have funding in no time!
How to Apply for Working Capital in Five Simple Steps
1. Be Accessible
After applying for working capital, make sure you’re accessible by the phone number and email address listed on your application. When going through the working capital application process, make sure to be as prompt as possible with any necessary communication. The more available you are, the faster you’ll have working capital in your pocket!
2. Have Financial Statements Ready
Gathering your bank and credit card statements prior to speaking with a lender will make the application process easier for you both. They’ll need to see this information, and the sooner they have it the sooner you’ll find out whether or not they can provide you with funding.
3. Know the Qualifications
Each lender will have different working capital requirements, so it is important to research them prior to applying. If your time in business, monthly sales or industry does not meet the lender’s working capital requirements, they will not be able to provide you with funding, and you’ll have wasted time applying for working capital. If your business hasn’t been in business for a long enough period of time, or your monthly sales are below the qualifications, you can work on improving these areas and apply in the future.
4. Be Straightforward About Your Business
Communicating issues with a lender upfront will save you time later on. If you have an existing loan with another lender, have declared bankruptcy or are worried about not being able to manage the suggested repayment rates, telling the lender this will help you both. Without knowledge of these factors, the lender may provide you with an approval that could be changed once they find out this information about your business.
5. Have a Plan for the Future, and Be Ready to Share it
Show that you’re passionate about growing your business. Determine what you’d like to use funding for, and explain it to the lender potentially providing you with working capital. Being able to articulate why you’re interested in applying for working capital could potentially increase your chances of receiving funding.
Learning how to get working capital doesn’t have to be stressful! Follow these tips and you’ll be able to quickly find out your approval status and how much funding you can be approved for. The more efficient and accessible you are, the easier this process will be. Good luck!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.