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Common Mistakes People Make When Applying for a Business Loan

Small businesses of all sorts and all profitability will eventually need a business loan. From renovating your space to making repairs to just getting through a slump in sales, the reasons for needing a loan are innumerable. But for every reason you will need a loan, there is a way you can make a critical mistake on your application that leads to a denial, and the possible jeopardizing of your company’s overall wellbeing.

At Green Ocean Solutions, we genuinely care about our clients and their businesses. We want to see you succeed and we want to be a part of that. Please refer to these common mistakes people make when applying for a business loan to help you avoid them, but if you know you need help right away, you can contact our Los Angeles business loan professionals now.

Top Three Business Loan Application Mistakes to Avoid

  1. Indecisiveness: Banks and lenders hate giving away money if they don’t know why they are doing it. You need to have a clear plan in place as to why you need a loan, what you will do with it, and how this will ultimately benefit your company and allow you to pay it back in time. Out of all the mistakes in this list, not knowing why you want a loan should be the easiest problem to overcome.
  2. Too much or too little: In addition to knowing why you need a loan before you approach a lender, you also need to know how much you require. If you take too little, you will not be able to achieve your goals, and you might limit your ability to get a second loan in such a short amount of time. If you borrow too much, you could be losing significantly through added interest that should have never been there in the first place.
  3. Hesitation: Lenders and banks will not process a loan in the blink of an eye. In rare situations, you can get minimum funding within 24 hours but most of the time, you are going to need to wait a few weeks or more, especially if your loan request is sizeable. Once you know why you need a loan and determine how much you will need, act fast and start seeking one out. Otherwise, the situation that made you require a loan in the first place could worsen, putting you in dire straits and reducing your chances of approval.

Once again, if a business loan is in your future, contact Green Ocean Solutions for the professional assistance you need to bolster your chances of success.