SBA loans are definitely available to manufacturing businesses, even though it may take extra work to get one of these. To help your chances of being approved, the following tips are provided for manufacturing businesses.
Be Specific About Your Loan Requirements
Banks tend to be very specific about loans, and they appreciate the same level of detail from applicants. Be prepared to discuss exactly how much money you need and exactly how that money will be spent to improve your manufacturing industry small business.
Provide Credit History
Even though any bank you apply to will run its own credit check on you, it’s best if you provide them with your credit history ahead of time so you have a chance to discuss it. Any areas that might seem questionable to a lender will need to be justified, so you should be prepared to do so.
Be Ready to Provide Collateral
In almost all cases, the SBA will require some form of collateral in order to approve your loan. That means if you own a home or any kind of expensive equipment, you should be prepared to pledge it as collateral.
Describe Company Management
Banks are very keen on having an understanding of who is running a small business and what their qualifications are. Be ready to provide background information on your team management, including resumes for each and a description of their responsibilities.
Patience is definitely a virtue throughout the loan process, so don’t lose your cool when a bank executive poses numerous questions to you. Keep in mind that your banker will have to present your proposal to his/her superiors, so they do need to have a thorough understanding of your situation.
Explain Your Projections
You should be prepared to convince any lender how you’re going to achieve your manufacturing industry business projections, as well as describing the market which exists for your products.
Provide Business Documentation
It’s best if you have all available business documentation at your disposal when applying for an SBA loan in the manufacturing industry. This means you need to have financial statements, bank statements, and tax return information so that a lender can have a complete picture of your business status.
SBA loans with 5 Star Funding Group
Arranging for an SBA loan can be the ticket to success for a small business, and we at 5 Star Funding Group are always willing to work with applicants for SBA loans. Contact us today to find out how you can secure the small business loan you need to achieve real growth and stability.