No, you do not need to put up any of your own money. You can get started with an instant approval process that takes just 15 minutes. The processing of your application will start right away. You can manage your loan from start to finish, too, without having to take a trip down to the bank.
What You Should Know About Putting a Down Payment on Your Business Loan
A common requirement from traditional lenders is the need for a down payment. For example, to qualify for a business loan, some ask applicants to have 20% of their cash into the deal to pay a down payment on the new equipment they’re purchasing with their business.
It is important to note that a down payment is not a requirement. However, it can give you more bargaining power or help with any cash flow issues that may arise. For example, suppose you do not have the money for a down payment. In that case, the business loan provider will still approve your application and fund your purchase. It just means that you would be responsible for paying off the entire balance sooner than if you had put some money into the business loan.
The lender looks at the strength of the business and how well it is performing financially to determine that risk. The company’s credit score will be used to show whether or not they can repay the debt.
What You Need to Provide for a Down Payment
The business loan company will only need your your financial information including your credit history. They will communicate with them to determine whether or not you are a suitable candidate for the loan.
You also need to complete a business loan application and provide the following:
proof of your company’s income (tax returns)
proof of your income (pay stubs)
your credit score and history for the lender to review (for qualification purposes only)
Note that you do not need to have been in business for any specific amount of time. It is more important to show you have a solid financial track record with a stable income over the past two years. If you have been in business for some time, this will help show potential lenders that you can repay your loan as agreed every month.
A common misconception from those shopping around for their first business loan is that they need some form of downpayment. This is not true. Whether you decide to make a down payment or not, you will still qualify for the loan and be able to purchase the equipment with no issues. So long as you can make your monthly repayments on time, it won’t matter if the business loan company does not receive a down payment from you.
According to Lantern by SoFi, “Before you start to apply for unsecured startup business loans, it can help to do some prep work to strengthen your pitch.” If you want to know more about business loans with no credit checks, contact a consultant today.
