From the course: Financing Your Business
Join today to access over 22,600 courses taught by industry experts.
Qualifying for a loan
From the course: Financing Your Business
Qualifying for a loan
- Let's talk about qualifications. To qualify for an SBA loan or a traditional bank or credit union loan, you typically need at least two years in business. Now, the SBA does not have a minimum time in business for most types of loans. However, individual lenders can have their own requirements. If a borrower defaults on an SBA guaranteed loan, and it happens too often, the lender could lose its ability to make future SBA loans. You're also going to need detailed financials. So in many cases you're going to have to provide a profit and loss statement, bank statements, and tax returns. You're going to have to be prepared for this type of financing and you should have strong credit. We recommend you have strong business and personal credit, because both can come into play. In fact, there's a special FICO score that's been developed just for small business. It's called the FICO SBSS Liquid Credit Score. It's a credit score…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.