Finding ways to apply for small business loans in 2020 is harder than it used to be. With the effects of the ongoing health crisis, loans are needed now in completely different ways. It makes sense to worry. But with the SBA overworked, it's a bit harder to get a loan than usual. So... now what? Well there are ways to apply for and get a small business loan in 2020, but it might take more effort than usual.
An important question when you're looking for a loan for your small business is to know how it will be used in 2020. Is this something that you need to finance now, or is it something that you can take some time with?
This is key when it comes to knowing what kind of small business loan that you need to apply for, in 2020 and beyond. This isn't just about the Coronavirus; it is about funding your business overall. If you need a quick influx of cash in order to keep your business operational, that requires a different type of loan than what you would need if you are getting long-term fundraising. These different forms of investment in your company can change what you need, how much you get, when you receive it, and more.
Recently, we posted about the best types of small business loans and lenders of 2020, so these places might be a start to apply with. If you're worried about your own business, then I recommend looking into what you could qualify for and when you'll need it. Also, look into the options you'll have the easiest time repaying so that you aren't burdened beyond your means.
This is often where we at ProStrategix step in to assist people with fundraising for small businesses. First thing first, you'll need to make sure that you qualify for the loans you're applying to. Then you need to make sure that you have all the features that are needed for applying to the loan. This includes financial statements and paperwork, but that's not always all.
Sometimes you need to make an in-person (or currently, a digital "face-to-face") pitch. If this is the case, don't worry about' bank-speak, you just need to worry about your own business. Similarly, make sure that you have the right pitch for your small business, something that sells your best value to the potential investor. Also, another must is a strong business plan.
The final step is actually applying. Once you have your details sorted out, you should be able to apply for a small business loan in 2020 regardless of the ongoing crisis.
It's safe to say that with everything that has been happening to the small business community in 2020 so far, it isn't the easiest time to apply for a loan. For example, right now the SBA is overwhelmed and might not be the best place to look for financial aid or loans due to COVID's impact. Once again, feel free to come to us for help. If you need money and have any worries about anything, ProStrategix can help.
Brian Cairns, CEO of Prostrategix Consulting. Over 25 years of business experience as a corporate executive, entrepreneur, and small business owner. For more information, please visit my LinkedIn profile