ACCC Explains How to Get a Business Loan

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American Consumer Credit Counseling explains how consumers who own a business can get a business loan

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Depending on the needs and length of the loan, there are several different types of business loans available. It is important for consumers to do thorough research to make sure they are applying for the best loan that will meet their needs.

Applying for a business loan can be daunting. Many consumers may not know where to start or how to narrow their choices to a handful of lenders when so many are competing for their attention. To help, national nonprofit American Consumer Credit Counseling (ACCC) explains how consumers can go about getting a business loan.

“Business loans are a great option to help businesses grow and develop,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “Depending on the needs and length of the loan, there are several different types of business loans available. It is important for consumers to do thorough research to make sure they are applying for the best loan that will meet their needs.”

According to ValuePenguin, the average business loan in 2018 was $663,000, but depending on the size and type of loan, the average ranged from $13,000 to $1.2 million. A Federal Reserve survey found that in 2017, 40 percent of business owners applied for a loan compared to 45 percent in 2016. Since there was less competition in 2017, more business owners were approved for the entire amount requested. Although these loans are on the decline, the Small Business Administration found that about $600 billion is borrowed by business owners each year.

ACCC explains how to get a business loan.

1. Ask why – Business owners must first ask themselves why they need a loan and how it will help their business.

2. How much? – Business owners need to take the time to calculate how much financing they can afford before moving forward.

3. Research – There are several different types of business loans available that vary depending on the consumer’s needs. Business owners need to do research and figure out which type of loan would work best.

4. Choose a lender – Look carefully at the cost and terms of each loan from a variety of lenders and choose the best one to fit individual business needs.

5. Organize financial statements – Depending on the size and type of the loan, lenders will ask to see the business’s account records and financial statements, so the business owner should be prepared to answer any questions related to both.

6. Know how much and for what – Lenders will want details about the size of the loan and what it will be used for.

7. Apply – Once the consumer chooses the loan, they should apply and make sure they know all of the details before signing.

ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

  • For credit counseling and student loan counseling, call 800-769-3571
  • For bankruptcy counseling, call 866-826-6924
  • For housing counseling, call 866-826-7180
  • Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx

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Marissa Sullivan
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