See How Much You Qualify For
Qualifications: In business for at least 9 months with at least $120K in sales over the past 9-12 months
If you’re in search of capital for marketing expenses, payroll, or expansion, you may be considering applying for business funding. Business loans can be used for almost any business-related purpose and can give business owners the flexibility they need when it comes to cash flow.
Here are 5 key takeaways to consider if you are applying for a business loan.
Only Borrow What Your Business Needs
When you begin considering a business loan, develop a long-term plan that outlines how the funding will be used. Outlining specifics can help ensure that you only borrow the amount that you need.
Businesses that borrow more funds than they need can encounter two problems. First, the repayment amount may be higher than you can afford. Much like an expensive mortgage, borrowing more than you can afford may lead you to miss payments, incur fees, and even limit your ability to fund other areas of your business.
The second problem that may arise is that excess funds that are not invested into your business may be considered “dead funds”. When the cash from your business loan is sitting in your bank account, you’ll be earning only a small percentage in interest. On the other hand, the cost of borrowing that capital will likely be far more expensive, leading you to pay interest just for having the cash in hand.
Ensure you Enroll in Automatic Payments
Managing a business is difficult and time-consuming, making it easy to forget certain tasks such as making payments to your financial partners, vendors, etc. Enrolling in automatic payments when repaying your business loan can help ensure that you do not miss any payments preventing a default on your loan.
Some aggressive lenders may charge penalties or fees for missed or late payments. Additionally, any co-signers or guarantors on the loan may have their credit dinged for delayed payment.
Be Diligent When Asking About Fees and Penalties
Some business lenders may invoke fees and penalties when it comes to a late payment or a payment that is below the repayment threshold. Before signing any closing documents with a business loan provider, ask them about their fee and penalty structure.
Some common questions may include whether or not fees or penalties are added for late or delayed payments and whether or not there is an early repayment penalty. Early repayment penalties can be added by some business lenders since early payment allows them to collect less interest. As an alternative lender that works with businesses around the country, we never charge penalties or fees for early repayment.
Have Your Finances in Order
When it comes to running your business, it may be difficult to keep track of all your financial records. Almost all business lending institutions will require that you provide certain financial documents which may include: bank statements, cash flow statements, balance sheets, and more.
Having these documents ready prior to applying for funding can help ensure you get access to the capital you need without delay. Many alternative lending partners, such as Mulligan Funding, can have you approved in as soon as a few hours* once all the proper documentation is received.
Conduct Research on the Business Lender
Unfortunately, many business owners fall victim to lending partners that seem to “disappear” after their loan has been funded or after they have signed an agreement. Business owners may find it difficult to get in contact with their loan representative or with the institution issuing the loan when searching for answers to questions or working out logistical challenges.
At Mulligan Funding, we have a dedicated Client Success team available to you at any point after funding, even after you’ve paid off your loan. We’re here to help support you and your business.
Researching financial institutions is a key way to ensure you are working with a partner that is ethical and reliable. Reading reviews from various review platforms can also provide you with the feedback necessary to ensure you are making an informed decision.
Final Note
Finding a business loan that meets your needs can be both difficult and time-consuming. At Mulligan Funding, we pride ourselves on our relationships with the businesses we work with. From payroll to marketing, the funds provided through Mulligan Funding¹ can be used for almost any business purpose.
Seeing how much you qualify for won’t impact your credit and allows you to shop for loans from other providers to ensure you are getting the best rate and terms. We even evaluate competitive offers and strive to beat them for you. To learn more about how we help businesses across the nation get access to the capital they need, call us today at 855-326-3564 or fill out our online quote request form here.
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.