18 Business Loan Requirements - Time in Business

18 Business Loan Requirements - Time in Business

When it comes to getting a business loan approved, you might be asking, "Why does it matter how long I have been in business?" It goes to the question of track record: a business with a long history has demonstrated staying power. The owners have shown that they can manage their business to date and keep it running.

Whereas, for those who have just started or have only been in business for less than a year, for example, you have not yet established any sort of history or pattern when it comes to your ability to run your company and make a go of it.

With more traditional lending term loans, the institution with whom you are working generally likes to see a company's time in business be for a minimum of two years. However, banks may be willing to look at newer companies with SBA-backed loans as long as everything else falls in line with their requirements. The reason is that the lender now has a guarantee from the government, making your company something of a safer bet.

If you do not qualify for financing via a traditional lender because you lack an established business history, that doesn’t mean you are totally out of the game. Online alternative lenders have less stringent requirements and sometimes even offer loans to applicants who have only been in business for a year, possibly even less.

What can greatly help you out if you are a newer company is to compose a solid business plan. This plan shows any lender that you’ve done your research, you understand the business landscape, and you’ve earnestly analyzed your company’s place within the industry.

At First Union, we do look at time in business, but we also consider the entire picture. All parts of your application are weighed as we decide whether or not to offer you a business loan. So don’t give up on the idea just because you are a relatively new endeavor. Contact us today and let’s talk!

You’re reading part 17 of our 18-part series: 18 Business Loan Requirements.

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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