You're in the right spot if you start outlining precisely what you would do with $60,000 and how it would benefit your business. Researching and understanding what’s available is an essential first step. Beyond that, you’ll want to position yourself to be a qualified candidate. At mySMBscore, you can view your business credit score and report through the eyes of a lender. Together, we can help you prepare for a business loan and help you find the best offer. Keep reading to learn more about $60k small business loans.
There is a step by step process to get a $60,000 business loan and it involves patience, planning, and preparation. Here are a few steps to follow to acquire a $60k loan:
From revenue requirements to down payments, you’ll need money to get money via a business loan. While there are business loans that don’t require a down payment - there are several that do. With no uniform down payment requirements for business loans, it can be hard to know what to expect.
Here is a quick breakdown of some down payment requirements that lenders may enforce depending on the $60k business loan you are applying for. SBA 7(a) loan: 10%
It’s important also to that some business loans may require collateral in addition or as a substitute to a down payment. A lender can often require collateral to secure a loan. If, for any reason, you should happen to default on a business loan, the lender can keep your down payment and seize the collateral to help recoup any potential losses.
Yes, although loan options may be limited for a start-up, plenty of financing options are still available. Start-ups have two main paths they can decide to take when seeking financing.
First, there is the equity-based route. The equity-based route involves seeking financing through venture capitalists or angel investors in exchange for a company share. This can be a great way to raise funds, especially if you have a great business idea. However, it is also a way to slowly give up some control of your company. If you sell too much equity, there could be a day when you no longer have executive control over your business.
Second, there is the non-equity-based route. Non-equity loans involve seeking financing through different types of business loans. Some common loans that start-ups seek when starting out include term loans backed with collateral, equipment loans, business lines of credit, and personal or home equity loans used for business purposes. There are advantages and disadvantages to each of these types of financing options. However, in each case, you will need a good personal credit score and a substantial income or monthly revenue demonstrating your ability to repay the loan.
Regarding the monthly payments on a $60k business loan, three main factors dictate this significant number.
The three main factors include the loan amount, the loan term length, and the interest rate.
You can get an estimated monthly payment amount by taking the loan amount of $60,000, factoring in the APR, and dividing it by the total number of months in the loan term. However, this will not include any additional fees from late payments, early payoff penalties, or any other charges that a lender may tack onto your business loan.
For example, let’s say you apply for a $60,000 business loan spread over 5 years with an APR of 6%. You can then do the math to determine that you will need to pay an estimated $1,159.97 a month for 60 months, and at the end of the loan term, you will have paid approximately $9,598.09 in interest. Understanding what you qualify for will help you learn what realistic monthly payments are for your situation. At mySMBscore, you can access personalized $60k business loan offers with no credit impact.
If you're looking for a $60k business loan, different lenders and loan types will have different requirements for qualification. That being said, most lenders will share a few determining factors regardless of the loan type. These factors include
When it comes to the business plan, some businesses, especially start-ups, will need a very detailed plan to help sell their idea to a lender. The business plan also can demonstrate your business knowledge and experience and help gain the trust of a potential lender. Your business plans should include financial projections, how the funds will be used, an industry overview and outlook, and an analysis of the competition. Additionally, you will want to show a five-year forecast of anticipated cash flow, income, and expenses.
Beyond business loan requirements and what you can control now, lenders will emphasize past history. To understand the elements that matter most and how you can improve your chances of qualifying, visit mySMBscore.
Before you get to the application process - you’ll need to prepare. The best first step is to check your SMB score. At mySMBscore, you can unlock actionable insights on better positioning yourself for a business loan. Next, gather documents that may be requested. These documents can also help ensure the information you submit while applying for a business loan is 100% accurate and provable.
Here is a list of some of the most common documents lenders will need to determine your eligibility for a business loan.
Once you have all the documents that a lender may ask for, you can go ahead and start shopping around for a business loan. One of the best ways to shop for business loans is to prequalify. Once you prequalify for a business loan, you can ideally review multiple business loans offers from multiple lenders to determine which loan option is best for you and your company. As part of our mission to help businesses prosper, mySMBscore can also help business owners connect with lenders that want to earn their business. We truly make finding the right business loan faster and easier.
There are a few main factors that lenders are going to consider when determining whether or not you can qualify for a $60k business loan.
First, they will review your personal credit history and, if you have one, your business credit history. Each lender will have their own minimum credit score requirements that you must meet or surpass even to be considered for a business loan.
Second, lenders will want to see you have a good amount of monthly revenue. If you are a start-up, they may look at your personal income to determine if you will be able to make the monthly payments on the loan. Also, they will look at all your current debts to ensure you can make all of your debt payments, including the payments on the new loan, on time and in full.
Last, lenders will want to see that you have business experience and a solid business plan outlining how you plan to use the funds and what kind of revenue and expenses you expect over the next several years.
With a business loan, there are several variables, but always put yourself in the lender's shoes. You’ll want to make sure you get your investment back. If you feel you would loan yourself money, you can probably find a lender that agrees. If you feel there’s significant risk in loaning yourself money, lenders will likely think the same. For access to a complete score breakdown that can help you identify areas of improvement, visit mySMBscore. Once you’ve addressed any necessary improvements, you can shop our lending network for a lower-cost business loan.