How much money can you borrow for a small business loan?
Since they have more stringent credit standards, they can afford to entrust businesses with more money.
To qualify for a medium-term loan, you generally need a 600 personal credit score, one to two years in business, and more than $50,000 in annual revenue.
What is the average loan amount for a small business?
Currently, the U.S. Small Business Administration guarantees loans up to $5 million in the 7(a) program, which can be used for working capital. The average loan amount in fiscal 2012 was $337,730. The SBA says that most lenders don’t want to make loans under $50,000.
How much collateral do I need for a business loan?
How much collateral you need depends on how much your business needs to borrow. Most lenders want collateral that’s worth at least as much as the loan you hope to secure. So if your looking to borrow $50,000 for your business, the assets to secure it must have a cash value of at least $50,000.
How do I qualify for a business loan?
More than likely, you’ll need an excellent business credit score as well as good personal credit to qualify for an SBA loan or traditional loan from a bank; this will depend on the individual lender and business factors such as your revenue, cash flow and time in business.
Photo in the article by “Picserver”