Summary: Taking out a loan can be daunting process. Whether it’s a mortgage for your first home or a new car, there are a lot of details to keep in mind when looking for the best possible financing option. When applying for a loan for your small business, it can be even more confusing. You may only need the loan for a short time or you might work alongside partners which can further complicate matters. Joining us on this episode of Excellence Expected is David Waring, who is going to offer his expertise of this very important small business topic and tell us what we should look for when considering finance and what we should avoid.<br> One of the main issues when small business owners start looking for a loan is that most of us don’t know the best type of financing for our businesses. There are so many different providers, all with different terms. What’s more, new financing avenues are becoming popular. Peer-to-peer lending has grown in popularity in recent years alongside the growth of the internet and this democratization of finance of seen many new providers enter the market. With so much information to consider, applying for a loan can seem like a minefield. David’s advice is to plan ahead as best you can. If you can give yourself more time to consider all of the different options, you’ll be able to do more homework on various deals and hopefully find the best financing option for your business.<br> You’ll also be able to make sure that your finances are in order, which can give you a better chance of getting a better deal. Of course, that’s not always possible and there are always going to be times when we are caught off-guard by life and business. Bear in mind though that the faster that you need money, the more that you will have to pay for it.<br> Financing can be a complicated and stressful process so David’s overarching advice is to do your research, take your time and plan ahead! You need to research the cost of the loan thoroughly so that you know the true cost of what you’re getting into. Know the payment terms and make sure that you can pay the loan back early if that’s what you want to do. Keep your financial records up-to-date and your taxes in good shape. This makes your business a much more attractive prospect to lend to. Finally, plan ahead if at all possible! Maybe you don’t need any financing right now, but perhaps you can envisage some growth or some expenses in the next six months. Get the ball rolling as the best value loans often take the longest to apply for.<br> Issue Challenged in this Small Business Podcast: <br> How can I find the best loan for my business?<br> About David:<br> David Waring is the founder and Editor-in-Chief of Fit Small Business and Fit Biz Loans. He has a wealth of experience in small business management and marketing. David’s site helps more than 300,000 small business owners every month cut through all the jargon and get right to the important information. The site includes in-depth articles, reviews and how-to guides about almost every small business topic. Fit Biz Loans offers excellent advice to small business owners as well as low rate business loans.<br> Actionable Tips:<br> <br> * Know the cost in terms of APR and total amount before taking out a loan. This is the single most important aspect to consider when it comes to small business financing. It can be easy to dive into something in times of need but you can end up tying yourself up in knots for the next decade or more!<br> * Make sure you have your finances in order before applying for a loan. If there is money coming into your business that is not on your tax return, then the banks or financing providers will not take it into consideration when assessing your suitability for a loan. Your taxes should be done and you should have an up to date balance sheet to show that your business is in good financial health<br> * If possible, plan ahead! It’s much better to borrow money when you’re able to and ...
