Getting a loan or a credit line for your business is often complicated, involving more paperwork than any of us is willing to deal with. Modern technologies have made this process easier and semi-automatic, but not all services rely on hi-tech tools.
As a business owner looking for capital, you should be picky. These days you can get a loan from a number of places, so you should strive to get something more. Here are 6 things we think you should ask for. Accept no less than that.
1. Flexibility
You’ll want to be in charge and decide when to use the funds and how much to take. In other words, better than a simple loan is a credit line that tops at some figure, and you have the flexibility to withdraw every time you need capital (up to the previously defined figure).
2. Transparency
No one likes fine print. If some service or bank doesn’t spell out its terms on its site, look elsewhere. You’ll want clear information on how much this loan will cost you at the end. The best services offer loans with no origination fees or prepayment penalties. Also, to avoid any surprises, you should be able to review your payment schedule before taking a loan.
3. Simple
Instead of you doing all the paperwork, modern loan providers allow you to link your business information to get an automatic financial review. This lets them evaluate your business right away without requiring you to track down financial statements. Otherwise, you would have to prepare all the papers to get the money needed.
4. Convenient
You’ll want the ability to access the loan information from your computer AND a mobile device (smartphone or tablet). If possible, the service could also provide you with a credit card to withdraw money whenever you need cash. Or to pay for products and services your business needs.
5. Personal
Most of today’s loan providers do a majority of their business automatically. Still, you’ll want to know there’s a real person somewhere behind. Does the service you are considering offers a phone number you could call? Could someone help you resolve an issue should you encounter one? Those are the things you’ll want to know.
6. Proven
Who else is using the loan provider you are considering? Are they a legit business? Better yet, are they a member of some business group (who could vouch for them)? You do want a loan but you want it from a respectable provider.
Where to go?
One word: Kabbage. This novel service has developed a simple way to get you up to $100,000 in minutes. Their tagline reflects that: “Small Business Credit Lines for The Real World.” We like what they are doing and how they’re doing it. Their service is easy to use, and as noted — you can get a credit line of up to $100K in minutes. Kabbage has already worked for many businesses, and it could work for you, too!