FindItMore | During the life of a small business, owners often find themselves in need of additional funds. Sometimes businesses hit a crossroads where growth can only be achieved through funds above what the business provides. Other times owners find themselves strapped for cash due to temporary downturns in the business cycle or a host of other reasons. Regardless of why businesses need funding, everyone should understand there are options.
Although it may initially seem a daunting task, obtaining a small business loan doesn’t have to be a difficult process. Companies like Camino Financial offer products and services that tailor to the needs of the individual clients. To get a sense of what kinds of loan products exist before heading into the application process take a look at the products Camino Financial has available.
When you’re ready to start there are 4 simple steps to apply for a business loan.
Step 1: Plan how you’re going to invest the money
The first step is often the most critical. Having a solid plan will help you find the right products for your individual needs. Consider the following items:
- How do you intend to spend the funds?
- Lenders often want to understand what the money will be used for in order to appropriately assess the risk associated with their loan. They want to ensure that the loan will be repaid on schedule.
- How large of a loan you’ll need?
- Sometimes you may have a very specific, identifiable need so you can easily determine the total amount of capital you’ll need to borrow. Other times you may be working through a period of uncertainty. If you can’t determine the exact amount of what you’ll need, start with an idea of a range you think could work. Discuss with your lender what you’re working to accomplish and they’ll likely be able to help you refine your calculations.
- What will be the return on investment or cost avoidance for the loan?
- Loans should only be taken as investments or cost avoidance (a similar concept). Calculate the money you’ll earn or save from the loan and then subtract out any costs associated with the loan. Compare that to where you would end up if you didn’t have the loan. If you are at a better spot with the loan then you are getting a positive return on investment (also known as ROI).
Camino Financial works with individuals to help them discover the right loans for their needs. Even if you need help with your plans, their loan specialists will work with you to develop one product suited to who you are.
Spet 2: Calculate how much you can afford to pay each month
Next, it’s important to understand how much you’ll be able to pay back every month. Being conservative, determine what cash you will have available to pay back the loan consistently each month. Make sure that you aren’t running too tight or being barely able to afford the loan payment each month. Understand that when loans aren’t repaid on time, they often incur late fees, and can quickly grow out of control.
Step 3: Choose your lender
Many lenders exist in the marketplace that offers loans to small businesses. What sets the best apart from others are those that provide affordable and tailored solutions. Companies like Camino Financial work closely with their clients to help them discover the best product for their needs. Often you will save more by getting the right loan for your needs than getting the one with the lowest interest rate.
Step 4: Submit your loan application
When you’re ready to submit a loan application, and you’ve validated you meet all the requirements, your lender will then review the paperwork. Keep in mind that just because you meet the requirements you may still not receive a loan. Make sure that both you and the lender keep in constant communication and address any issues quickly and efficiently.
Let Camino Financial Help Your Business Grow
Camino Financial makes the loan application process easy and individual. Their loan specialists will work with you as an individual to provide you the information and service to get you the funds you need. Camino Financial notably:
- Provides funds in less than 10 days
- Doesn’t require collateral
- Little documentation is required
Apply today for a loan with Camino Financial and get the right business loan for your needs.