These Are Questions You Should Ask Before Signing a Business Loan

Pennygem

Business loans are great to help build your business or to step in during hard times. But before you sign on the dotted line, PennyGem’s Lenneia Batiste has 5 main questions you should ask, first!

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00:00so you need a business loan whether to help you build your business or hold you over if you're

00:07having a rough patch business loans are great to help you achieve and maintain your business goals

00:12but if you aren't careful they could become a pain later so here are some questions to ask

00:16first before you sign on the dotted line first is a loan actually the best choice

00:21Forbes says if you look around you might be able to get direct funding from an angel investor

00:25or your business may qualify for a grant so do a little research with your direct community

00:30next what is the total cost of the loan on deck says many business owners only focus on the APR

00:36but you should also ask about the total cost of financing so you can see exactly how much you're

00:42paying back for example for a ten thousand dollar loan you might actually pay back twelve or thirteen

00:48thousand dollars back to your lender once interest is added this next step is important determine if

00:54the lender will do a hard or soft pull on your personal credit finance experts say that some

00:58lenders can do a soft pull to determine credit worthiness so you can determine if the loan is

01:04right for you without marking up your credit and of course read all the fine print and look for

01:09penalties for early repayment grace periods and when an interest rate will change if it's not a fixed

01:15loan always to make sure you're making the best decision for your business

01:19that's the best decision for your business

01:23that's the best decision for your business

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