9 Essential Tips for Securing a Small Business Loan

Running a small business can be an exciting venture, but it often requires a significant amount of capital to get off the ground, or occasional capital injections to help working capital needs. One way to secure the funding you need is to apply for a small business loan. However, getting approved for a loan can be a challenging process. Here are 9 essential tips for securing a small business loan.

1. Start by Understanding Your Needs – Before applying for a loan, it’s important to understand how much money you need and what you will use it for. This will help you determine the type of loan you need and the terms that will work best for you. Take time to create a detailed business plan and financial projections to ensure you have a clear understanding of your financial needs. MobyCap offers funding from $75k to as much as $5 Million.


2. Check Your Credit Score Your credit score is a significant factor in determining whether you qualify for a small business loan. Check your credit score before applying for a loan to ensure it’s accurate and up-to-date. If your score is low, take steps to improve it before applying. However, we are still open to working with all credit profiles depending on the strength of the rest of your borrowing profile.


3. Research Your Options – There are many different types of small business loans available, including traditional bank loans, SBA loans, and others. Research your options to find the best fit for your needs and make sure you understand the requirements and qualifications for each type of loan. MobyCap offers a variety of funding options, as well as being able to offer customized funding to what fits your needs. Our most common products are our Revenue Advance and Term Loan, but we also offer a Virtual Line of Credit, Invoice Factoring, and Equipment Leasing.

4. Prepare Your Documents – When applying for a small business loan, you will need to provide several documents, including financial statements and tax returns. Make sure you have all of these documents ready and organized before applying to streamline the application process. We are able to begin the application process with just 6 months of business bank statements. And the rest of the documents can be provided later.

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5. Build a Strong Relationship with Your Lender – If you plan to apply for a loan, it’s important to build a strong relationship with your lender. This can help increase your chances of approval and improve your overall borrowing experience. The best part of working with MobyCap is once we get our first deal with you under our belt, we are able to offer you unheard of rates and terms since we value a long-term relationship with you.


6. Consider Collateral – Some loans may require collateral, such as property or equipment, to secure the loan. Consider whether you have assets to use as collateral and whether you’re comfortable putting them up to secure the loan. Conversely, MobyCap only provides unsecured loans. Meaning any funding secured does not require any collateral from you, so you can sleep easy at night knowing all of your assets are safe.


7. Be Realistic About Your Ability to Repay – When applying for a loan, it’s important to be realistic about your ability to repay. Make sure you have a clear plan for generating revenue and paying back the loan, and be prepared to provide evidence of your ability to do so. Our Revenue Advance has a built in feature that can lower your payments if your revenue decreases in the future, but will never increase your payments either.


8. Be Prepared to Negotiate – Loan terms are negotiable, so be prepared to negotiate to obtain the best terms possible. This may include negotiating the interest rate, repayment schedule, or other terms of the loan. We will work with you and do whatever it takes to get the deal done!


9. Work with a Professional – Securing a small business loan can be a complex process. MobyCap’s white-glove service walks you through every step of the process, and are happy to answer any question you might have. There’s a reason we continue to be so highly regarded for our process and customer service.

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In conclusion, securing a small business loan requires careful planning, research, and preparation. By following these essential tips, you can increase your chances of getting approved for a loan and getting the funding you need to grow your small business.


Moby Capital has been helping thousands of businesses just like yours to secure small business loans for over 10 years. We have sourced over $1 Billion in funding for small businesses and we have the expertise to make the loan process as fast and easy as possible. Contact us today to learn how we can help put money in your pocket.

*MobyCap specializes in both loans and alternative financing options. Please see our website for our full suite of services and offerings.

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