10 Things Small Businesses Want To Know Before Applying For a Loan

Thanks to the rise of alternative lending especially from Non-Bank Financial Companies (NBFCs), small business owners are now spoilt for choice. Furthermore, they are now more knowledgeable with some seeking advice from Small Business Development Centers (SBDCs) before applying for a loan.

As competition increases, the Go-To lenders will be those that provide affordable and tailored services and are able to respond promptly to the following concerns from small businesses:

a)     Do you lend to businesses in my industry?

b)    Do you offer a loan that fits my business need?

c)     How long will the loan application process take?

d)    What’s the pricing and the total cost?

e)     What will my payment schedule be?

f)      When will my first payment fall due?

g)     How do I make the periodic loan repayments?

h)    What is your Better Business Bureau (BBB) rating?

i)       May I get a few testimonials of your current and past customers?

j)       Do you report my loan repayment history to the appropriate credit bureaus?

If you are an NBFC lender, how would you respond to the above concerns?

Find some tips here