The First Step to Getting a Loan for Your Small Business: Understand Your Eligibility.
This guest post was contributed by Chinwe Onyeagoro, CEO and Co-Founder of FundWell.
Our online tool can be a great funding resource for small businesses, and we are excited to post it about it here. The FundWell funding tool instantly gives small business owners their current eligibility for funding amount, interest rate, and timing to close.
A business owner can then take the next step and learn what to do to improve his/her financial situation to get better funding, or simply request lender referrals. FundWell matches a borrower with up to three lenders for free.
Our network of national, direct lenders provide 11 different types of debt funding products for amounts ranging from $500 at 0% interest to $2 million dollars at varied interest rates.
We believe that education is one of the keys to small business funding success, which is why we provide detailed descriptions, and pros and cons for each funding product available through our network. These products include: SBA loans, bank loans, factoring, equipment loans, purchase order financing, merchant cash advance, peer-to-peer loans, and more.
FundWell does not lend directly, but is always available to provide a better understanding of loans, rates and terms to help business owners make the right decision. This insight can help a business owner determine if now is the right time to take out a loan, or if it makes sense to work on improving the financial health of the business and apply for a loan in a few months.
FundWell doesn’t stop at loan matching, or even loan application assistance, but also provides financial wellness tips, advice, and action plans to help improve the financial health of a business over time. This is important, because it enables a business owner to get more money at lower interest rates to support future growth. View a sample financial wellness plan.
We know running a business isn’t easy and time is a luxury, which is why many of our tips are quick and simple to implement, such as the following:
- To help improve a credit score decrease the outstanding balance on revolving debt (i.e., credit cards) down to 25% of the total available credit limit.
- Prioritize high priority bill payments for things the business absolutely needs to operate.
- Take advantage of a tenant improvement (TI) allowance rather than paying for needed updates to a rented office space. Lenders do not incorporate tenant lease payment obligations in debt ratio calculations, so when a business uses the TI allowance option, they get the office space updates they need without compromising their ability to raise debt.
Prior to FundWell, Chinwe co-founded boutique consulting firm O-H Community Partners (OHcp).