How To Obtain An Industry-Specific Loan

When your business requires a working capital loan, you may want to consider an industry-specific loan instead of a general loan. Reasons to do so include higher rates of approval and a service that is catered specifically to your business needs. That being said, the chances of getting turned down still exist. In this article, we lay out some ways you can increase your chances of obtaining an industry-specific loan.

Name *

First

Last

Phone Number

Email *

Company Name

Company Website

Description

Submit

Make your business plan industry-oriented

Often when taking out a general loan, bankers do not understand industry-specific jargon and simply look at your plan as a whole. However, industry-specific loans are different in that these lenders know your industry inside and out. This means that you have the advantage of explaining any issues you are anticipating to an audience who knows exactly what you mean.

Share industry-oriented statistics

Following off from the above point, it makes sense to share industry oriented statistics instead of general data on cashflow when obtaining an industry-specific loan. This can more clearly highlight your goals and where exactly you fit into the industry. For instance, if you are a winter apparel retailer, you can share data about your seasonal sales figures. Businesses that deal directly with consumers can benefit from sharing customer reviews as well.

Want to Know How We Come Up With a Loan Offer? Let Us Show You!

Calculate exactly how much is needed

Even if the lender does not require it, calculating exactly how much is needed to tide your business over is crucial for your own internal operations. If you do not end up borrowing enough money, you could end up in even more trouble as you struggle to repay the loan without obtaining the working capital you need in the first place! Detail out what you intend to purchase with the loan and how you expect these purchases to influence your long-term sales and profits.

Offer collateral

When obtaining an industry-specific loan, offering to put up collateral that is of particular value in your industry can increase your chances of success. For instance, if you are a tech company, a piece of intellectual property would make an excellent collateral offering. General bankers may underestimate the value of your offering but industry lenders know exactly how much your offering means to your business, allowing them to sense your sincerity and take you more seriously.

Compare the loans offered by multiple lenders

Even within the world of industry-specific loans, different lenders can offer vastly different loan terms and application processes. Like with anything else, it helps to do some comparison before deciding on which lender to go with. When in doubt, you can even apply for more than one loan before deciding on the best one based on the terms you are offered!

Are you looking for a working capital loan for your business, but feel overloaded with all the information out there? If so, you have come to the right place at CMS Funding –  we work with each client to tailor funding to your industry-specific needs with an assigned service team! Furthermore, we strive to approve all applications within 24 hours of receipt. Get in touch to see if you qualify for a working capital loan today!