18 Business Loan Requirements
13 – Loan Purpose
Why are you trying to get a business loan? This is a pretty basic question and one the lender is probably going to want to be documented- particularly if you are going the more traditional lending route. Some companies need to purchase inventory, some may need new and better equipment. You might be looking into expanding your office space or hiring on more people. These are perfectly fine reasons for attempting to qualify for a loan. Basically, the lender simply wants to ensure that the amount you are asking for corresponds with the project at hand. This way too, they can better assess your capacity to pay it back when it is all said and done.
Also, by figuring out what the money is being used for, you can get a clearer picture in terms of what type of funding specifically you need. For instance, perhaps cash flow is down, whether a seasonal issue or an industry slump. This would suggest that a line of credit could be your best bet as you try and infuse the business with some needed cash. Some want to refinance old debt, you may then look into a short or long term loan. At First Union, we have a variety of business loan suitable products just for about any use and/or purpose you may have.
Our job is to work with you as you navigate the application process in an effort to determine the best course for you. You get a dedicated advisor available to answer any and all questions, and with our extremely fast turn over times, you can be funded in a little as two days. We have worked with a multitude of industries around the country. And this we’ve learned that no clients are alike- loan purposes differ drastically. With alternative lenders, you do get a bit more flexibility in terms of what can be done with the funds. Call today and we can certainly help figure out which product might be best for you!
You’re reading part 13 of our 18-part series: 18 Business Loan Requirements.