Don’t Sign That Business Loan Until You’ve Asked These 5 Questions

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

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