Small Business Loan Basics

Small Business Loan Basics Featured Image
Do more with Dime.

Contact Us Today

You have an idea for a great business. You know you’ve got the drive and know-how to make it a success. You just need the funds to get it off the ground. Put yourself ahead of the game by making yourself an expert on all the small business loan basics. Here are a few things to consider before you start filling out an application for a small business loan.

Who’s Going In with You?

Is this business all your own? Do you have partners or investors? Your eligibility for small business loans will be determined by several factors, including:

  • The FICO score for each founding member
  • How much collateral you have
  • The size of your down payment
  • Relevant business experience and/or profitability

It’s important to wrap your head around who you have on your small business team, and what assets you’ll be able to show a lending institution.

Who Do You Want to Bank With?

Choosing a banking partner can be just as important as choosing a business partner. Make sure you find a bank who supports your business and can help you as you grow.

Consider these things when evaluating banks and credit unions:

  • Experience working with your industry or business niche
  • Estimated loan amount you’re looking for
  • Participants in the SBA Preferred Lender Program
  • Pre-approval process
  • Point of contact
  • Interest rates
  • Policies for collateral

Also check out what kinds of business lines of credit you can access with your bank, as an LOC can help you accelerate your business expansion when you and your finances are ready to go.

Additional Perks

What else is important to you with a financial partner? Convenience? Technology? Keep a lookout for things like:

  • Mobile banking
  • Mobile deposit
  • Online bill pay
  • Business savings accounts

At Dime, we’ll help you find the right resources for your business. Ready to get started? Stop by a local branch or contact Kevin Gallagher, SVP – Group Leader, SBA at 631-358-7619 ext. 5991.

You Might Also Like

8 Essential Cash Management Tools for Small Businesses

When it comes to managing cash flow, you need to know the 8 essential cash management tools for small businesses.…

3 Essential SBA Loan Options for Small Businesses

Whether you are a start-up business or existing business, you should know the 3 essential SBA loan options for ...

Six Best Practices to Help Your Business File for PPP Forgiveness

If your business received a PPP loan, you should consider these six best practices to help your business file for…