Most entrepreneurs who start their own company need a business loan. Some might feel anxious over the prospect of seeking cash, but there is no need to be fearful. The process is relatively simple, especially for those who know what to expect. Here are the four basic steps involved in funding your dream.

1. Decide What Loan Is Best for You

There are many choices available for startups that require funding. A Small Business Administration loan is often the best choice, as they have a solid reputation for offering low rates and favorable terms. Traditional bank loans are tough to secure, but they offer some of the best deals on the market. Microloans are a viable option for those with shaky credit. Unfortunately, they can be costly and are best used as a short-term solution. Business credit cards are similarly easy to acquire. By no means are these the only options available. Figure out how much you need, what you can afford, and which financial instrument is best suited to your situation.

2. Select a Lender

Once you’ve picked the type of loan you desire, identify the sort of lender you want to approach. Note that not all lenders service every style of loan. Direct lenders, such as banks and credit unions, are the traditional paths. Lacking third-party involvement simplifies loans acquired from them. Lending marketplaces help find lenders that match your financial qualifications. Since they exist online, they are extremely convenient. Peer-to-peer lending has grown enormously in recent years. Pursuing these lenders makes sense if you’re comfortable approaching independent investors or want to make a crowdfunding appeal.

3. Gather Documentation

To have your loan approved, you need plenty of supporting records. Such materials may include tax returns, business statements, licenses, and a business plan. Make sure you have every potentially required piece of data with you when meeting with a creditor.

4. Complete the Application

Be as thorough as possible when filling out your business loan application. Leaving required information blank could result in denial of your request. Expect to wait between one day and six months to find out whether you’ve been approved. The amount of time you’re in limbo depends in part on the classification of loan you want.

Getting a business loan doesn’t need to be complex. As long as you know how much you need and where to go, it’s fairly straightforward. Do your research, collect information related to your venture, and be conscientious when answering forms. Take care of these duties and the rest should be a walk in the park.