In order for your business to take off or continue to operate, you must be able to obtain the financing you need. It’s not easy to come up with that money, especially if you don’t have business experience and don’t have a very good credit score. There are things you can do to increase your chances of getting approved. Here are some tips on how to apply for a small business loan:

• Write a detailed business plan that explains exactly why you need the financing, how you plan to spend the money, and what you will do to pay it back. The last part is especially important, since you must show that you will be able to make a profit and that through those profits you can repay the lender with interest.

• Research the different types of loans and determine which one would be the best to apply. SBA loans are backed by the US Small Business Administration, but generally have strict eligibility requirements. There are term loans offered by financial institutions such as credit unions and banks, and they can range from short-term to long-term solutions. Other options include lines of credit, merchant cash advances, microloans, crowdfunding, etc.

• At some point when you learn how to apply for a small business loan, you should take the time to review your credit history and score. If your business has been around for less than three years, you probably won’t have much of a business credit history. You may need to use your personal credit history, and if it’s not very good, you may have some trouble getting approved. Review credit reports and consider working with a credit repair agency that will help you eliminate any potential errors and clear up some problems.

More tips on applying for a small business loan

• Compare different offers and terms. Choose at least 3 lenders who seem to offer you the ideal terms and conditions. If you don’t take the time to review various options, you may miss out on a lower interest rate. However, don’t take out TOO MANY loans, as it could hurt your credit score.

• Read reviews of each lender you are considering to see what other companies of similar size to yours are saying about them. Which lender seems to rank well among companies in your industry? Which ones have a solid financial situation?

Now that you know how to apply for a small business loan, start preparing all your credit information and reports, and create a good business plan. Start with a company like US Business Funding, which is A + rated with BBB.