If you are a small business owner,you will understand the necessity of borrowing money. It could be for any number of reasons—gaps in cash flow, financing growth, additional working capital—they are all important elements of a business that requires funding. This is when you, as a small business owner, have to gather as many facts at your disposal and make a loan application.

Here are some tips on how to apply for a small business loan in 2019.

Be Strategic In Your Approach To Borrowing

One of the best ways to anticipate your business’ possible need for financing is to chart when you have slower months and prepare for them financially. This is when it makes the most sense to apply to credible institutions that can extend a loan for small business. This strategy for borrowing can give you the time to evaluate how much you will need and how long before you can pay back the entire amount.

How Do You Intend To Use The Cash Injection?

Before they hand over the funds, the lender you choose will want to know how you intend to use the money and why you need it. Just saying you need working capital is not enough, in most instances, for an underwriter to consider the loan. Try breaking the loan into incremental amounts.

When you make your loan application, ask for x amount for inventory, x amount for staff hires, and x amount for extensions, and so on. This clarity will be more self-explanatory than asking for xxx amount in total. When the lender sees a breakdown of expenses like this, they will have more confidence in your ability to plan and how you will deploy the money once it has been received.

Preparation Ahead Of A Loan Appointment

Submitting the loan application is only half of the work. The next step that any small business owner must take when looking for a line of credit is meeting face-to-face with their banker or lender. If you have watched shows on TV where the applicants meet with four or five potential business backers, you will have some idea of the paperwork and documentation you must provide:

  • Revenue records
  • Clear business plan
  • Past and current tax statements

Having these documents at hand allows the lender to discuss the loan that will best suit your needs. When you know your personal credit score up front, and exactly what the money will be spent on, the chances of your loan being looked upon in a favorable light increase exponentially. If you are looking for business term loans, You can engage with Crestment Capital to have proper guidance for this.

Make Accurate Statements

When it comes to filling in a loan application, always be as accurate as possible. This includes such things as grammar, punctuation, misspellings, and precise business history details. Avoid abbreviations and spell everything out in full, including every permutation of your business’s name as it is known.

Double check that the numbers and details such as email addresses are functional and correct. Many small business owners get professional proofreaders to edit their applications before submission. The goal is to get the underwriter to approve the loan with no added questions asked.


Northern girl Laura is the epitome of a true entrepreneur. Laura’s spirit for adventure and passion for people blaze through House of Coco. She founded House of Coco in 2014 and has grown it in to an internationally recognised brand whilst having a lot of fun along the way. Travel is in her DNA and she is a true visionary and a global citizen.

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