It is still possible for a manufacturing company to obtain an SBA loan, although it might involve a bit more preparation and documentation in order to get one these days. Banks and other lending institutions are requiring more information currently than they have at any time in the past, so you may be obliged to follow some of the steps below to obtain an SBA loan.
Provide Information about Company Management
Whenever banks do approve a loan application, they want to be familiar with company management and who’s actually running the company. You’ll be improving your chances by providing information on owners of the company as well as critical employees, and describing the responsibilities of each. If some important roles have not yet been filled in your company, you can at least provide a summary of all characteristics you’re looking for to fill that position.
Be Ready to Supply Collateral
The SBA will almost always require collateral in order to approve you for a loan. Lacking any other assets, you will probably be obliged to offer your home as collateral. Even so, the SBA might want a lien on your business assets, and it may also insist on having a life insurance policy on a business owner who is the sole proprietor.
Prepare a Thorough Credit History
Your bank will undoubtedly run its own credit report against your business, but if you run it yourself and prepare to discuss it in detail, you’ll have the chance to be proactive in explaining any issues which may pop up. You’ll also want to know if there are any unjustified lines on your credit report so that you have a chance to get these removed if they’re inaccurate. Any other problems such as identity theft or bankruptcy will have to be explained also, and by running your credit report ahead of time, you can get out in front of the situation and be prepared to discuss it with any lender.
In Need of an SBA loan?
We work with SBA loans at Impact Commercial Capital, so if you’re interested in obtaining one, we’d like to hear from you. Contact us today, so we can explore some opportunities which may be available to you.