The first question is should you apply for a personal loan for your business? Generally speaking, if you are a newer business (less than a year in operation/) you may have a difficult time getting an actual business loan. Lenders like to see sustainability, they like to see some sort of track record, not to mention, they want an idea of what type of annual revenue you're bringing in. Plus, as a new business, you probably don't yet have a business credit score. These are all factors which might lead you to seek out a personal loan for business should you need cash.
This is not necessarily a negative thing. Personal loans often have lower rates, they can usually be paid monthly rather than weekly and they can also help you boost your credit score. Going this route could definitely benefit both you and our company.
Documents Required for a Personal Loan
So what exactly do you need when going to apply for a personal loan for business…First off, you have to have the completed application. With many alternative and online lenders—and even some more traditional lenders—this can be done electronically. The other documents that the lender is probably going to ask for include:
- Driver's license
- Bank statements
- Tax returns
- Pay stubs (if applicable/)
- Credit score
Once they evaluate your application you will receive a decision regarding potential funding. At First Union, we make it easy. We understand that you have a business to focus on—no drawn out or tedious application process here. In fact, many of our clients get their cash within a couple of days. With short term loans, bridge loans, equipment financing and lines of credit, we guarantee we have loan products that will work for you and your business. Call today and let's get started!