A Guide to Business Loans

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A Guide to Business Loans

A Guide to Business Loans

Blogs
June 3, 2020

And how it can help your business succeed

If you own a business, you're responsible for staying updated, whether it’s for buying equipment, hiring more employees, or purchasing supplies to keep up with the competition.

If a company wants to expand, obtaining a business loan can be a helpful way to facilitate the expansion process. Although business loans may appear daunting, they are often more accessible than you might imagine.

Read on to learn more about how a business loan can help your business grow faster.

Create a solid business plan

Preparing a business plan will help your lender understand what you plan to do with the borrowed funds. 

By outlining your goals, strategies, and financial projections, you can have a clear understanding of how you plan to use the business loan.

Figure out how much money you need

Loans can include interest and fees, so you need to ask yourself: What is the purpose of this loan? 

Based on your answer to this question, you should borrow only what you need, not as much as you are eligible for

Decide which type of loan is right for you

By comparing lenders, you can find one that suits your needs. 

You have the option to choose from various sources when obtaining a loan, including family, friends, banks, local credit unions, and online lenders.

Make sure you compare the details of all offers, including the advantages and disadvantages in rates, loan terms, down payment requirements, and fees.

Additionally, you should determine your monthly budget to determine how much you can afford to pay each month.

Choose the right lender for your business needs

When choosing a business loan, understanding the difference between traditional and independent lenders is key.

Traditional banks often prioritize long-standing relationships and require specific collateral to secure financing. While this can work well for established businesses with assets, loan processing can take weeks.

Independent lenders like ABU-EMP offer a more flexible alternative. We provide loans without collateral and instead rely on your guarantee and the financial health of your business. This approach speeds up approvals, often getting you the funds you need in days rather than weeks.

We typically ask for financial statements like your business checking account for starters. It's a straightforward process designed to help you get the funding you need to grow.

Submit and Review the Paperwork

To avoid delays, research and prepare all the required documents before your lender asks you how much you need.

When you've decided, contact the lender of your choice and fill out your loan application truthfully, meticulously, and completely.

Take your time. Carefully read and understand the terms and conditions in your contract. Don't hesitate to ask for clarification if needed.


Despite popular belief, business loans can help a business grow faster with the right management. 

When you are prepared, know how much you need, and select the right lender, you will be approved in no time!

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