As an owner of a business, you may need money to boost cash flow, buy new equipment or expand your operations. A business loan is a loan that you pay back over time, with interest. The kind of business loan and lender you choose, there may be different requirements and terms, including whether the loan is secured or in the event that a guarantee is required. If you’d like to maximize your chances of being approved, apply with a lender that will be looking at your company’s financial health as well as your personal credit score and history.

When you are comparing business loans, be certain to check the total cost of the loan, including the annual rate, as well as any penalties or fees. Also, you should determine if the loan has been secured. This typically requires collateral like inventory, real estate or assets. Unsecured business loan is the opposite. It does not require collateral, but is subject to higher interest rates.

All lenders will verify your personal and business credit score prior to approving a loan. Some will also consider your business plan, along with other documents, when they are part of the application process. It is important to prepare when you apply for a business loan so that you can be able to provide the necessary documentation in a timely manner. You can submit your personal and business tax returns, bank statements, and cash flow forecasts. Some lenders offer expedited processing to qualified borrowers.