The Small Business Lending Index has some good news for you as a small business owner. Small business loans have reached their highest approval rate yet. The strong economy and overall optimism for small businesses is to thank, and your probability of getting a loan has never been better.


Biz2Credit CEO Rohit Arora directs the research done monthly with thousands of small business credit applications. “The economy is still strong, and small-business optimism is high,” he says. “Small-business lending is as strong as it has ever been in the 21st century’s post-recession era.”


So, the time is right. What else do you need to do to apply for a business loan?



When you’re a small business, you’re most likely going to have to put in collateral. This is a personal guarantee to the lending company that you’re good for your word when it comes to paying back your loan.


Collateral comes in the form of pledging your assets. Cash, equipment, accounts receivables, inventory, real estate, and other properties can all be used as collateral. The more collateral you’re able to guarantee, the greater your chances of getting approved for a loan.



Overall, will your business be able to survive getting a business loan? You have to think about the capacity of your business to undergo borrowing a large amount of money and having to pay it back.


You’ll want to carefully lay out your monthly payments and think through the entirety of your business. Is your cash flow sufficient? Are you prepared in case of a sudden drought in sales, membership, client base, or whatever’s driving your cash flow? You have to show your lender that you’ll be good for the money, and that your business has been generating enough income to prove that.



Lenders will indeed consider your character. Can they trust you? You will likely have to show them recommendations from companies that you’ve done business with. 


Lenders want to know who they’re getting into business with, and if you’re not able to prove that you’re a reputable person, your chances of getting a loan are likely to decrease. Credit history, reputation, members of the community, customers, and many others can all help to prove your character.


Conditions are the factors of a small business loan that are usually the most far out of your own control. These include things like the current political atmosphere, the economy, trends with the industry, or legislation that might be upcoming that will make a change in lending.


Yet there are still some things in your hands. You’ll have to explain why even though these things might be a factor, your business is set up to thrive even in the face of change. You might have to do your research on legislation and the economy, but getting your loan will make it all worth it.



Capital might be the most obvious list. You have to make money to borrow money. If you have assets, then you’ll be more likely to get your loan. Your existing equity should exceed your current debt. If that’s the case, then you’re on the right track.

At TopMark Funding, the time is always right to apply for a small business loan. It’s a fast and easy loan process, and we understand that sometimes you need to look beyond the 5 C’s, and into each individual’s personal story. If you’ve been looking for a place to get your business loan, then you’ve found the most personal, streamlined service that you can get.