Things to Do Before Applying for a Loan
If you are aspiring to be a FedEx independent contractor, there are some things you need to know before you can start running your own business. One of these is ensuring that you have the right amount of cash. That starts with applying for a loan and ensuring that it gets approved.
Here’s what you can do to get everything in order before you apply – and what you can do to improve your chances of getting it approved…
Know Your Options
The true cost of loan varies from institution to institution. That’s why it helps to start by looking around and assessing various interest rates, loan length, monthly payments, and more. There are also micro-lenders, credit unions, and commercial lenders that you might need to consider. Find the best companies for your needs, evaluate them, and apply to one that meets those exact needs.
Know Your Ideal Terms
That said, you also need to understand the best loan type (and terms) for your needs and your finances. How long will it last, what are the monthly payments, as well as the accompanying interest rates. Develop the ideal loan terms for you, and seek out the closest version amongst lenders.
Your Cash Flow
This is one of the biggest things that lenders look for in a business loan. You need to be able to demonstrate that you can afford the monthly loan payment, based on the terms of the loan (which determine the monthly payment).
Your Credit Score
Just like most things in life, you need to have good credit. If you’re applying for a loan, specifically as a small-business owner (as a FedEx independent contractor), your credit needs to be in good standing in order to get your loan approved. Take a look at your score, and where your bank draws the line, to get a better idea if your loan will be getting approved.
Your Accompanying Documents
Loan officers know what they need from you, and ensuring that you have everything is bound to make the process go smoother. Whether from creditors, employers, or other financial resources, make sure that you have everything you could possibly need. This includes bank and credit card statements, tax returns, and more. If you don’t come prepared, it could hurt your chances.
Get Approved Today
As a small business owner, you need to ensure that you have the appropriate capital to make your small business ownership dreams come true. As a FedEx independent contractor, you have the opportunity to work for yourself, under a trusted brand. Take the right steps to applying for a loan today, and ensure that you get approved.