Building a business takes time and passion, but most importantly, it takes a lot of money. For established companies, finding loans and getting the money they need to grow their business is simple. However, for startups, you don’t have an established reputation to build off of. You’ll need to be diligent and determined when getting the financing you need. Here are a few tips to help you get a great SBA loan so you can get your startup off the ground quickly.

Think About What You Need

Every business is unique and the amount that you’ll need to borrow from lenders will not be the same as other companies in your industry. Take a look at your goals and your business plan. How much will it cost to reach those goals? Revamp your business plan to outline how you’ll use the loan and what you’ll do to repay the full amount you borrow. Keep in mind that lenders will only let you borrow the amount they feel confident you’re able to repay. This means you’ll likely need to look into several types of loans before you’ll have the money you need.

Look at Your Personal Finances

Established businesses can use their profit history and solid financial reputation to help them qualify for loans. Startups don’t have that luxury. Instead, lenders will look at your personal finances. Before you apply, find out what your credit score is and do what you can to boost it. Pay down existing debts as much as possible without wrecking your budget and avoid taking out new loans until you get your SBA loan. This will make your application look as strong as possible and increases the confidence lenders have in your ability to repay the loan in full.

Consider a Down Payment

For newer startups, the best way to increase your chances of getting a good loan is to make a down payment on that loan. This could be a set amount of money that the lender accepts or collateral used to secure the loan itself. The collateral could be your business’s building, equipment or another physical item that shows you’re serious about repaying the loan. If you end up defaulting, the lender can take possession of your collateral to settle your outstanding debt. This might sound bad, but it can help you get a much lower interest rate and may even keep your monthly premium payments low over the life of the loan.

The right SBA loan can make all the difference in your startup’s ability to grow. Keep these tips in mind when you apply.