You’re finally ready to start your own company after years of dreaming and careful planning.

Though you have a bit of cash saved up, you still need to take out a business loan to get your business off the ground.

But with so many lending options, how do you know you’re making the right choice?

Read on to learn the most important do’s and don’ts of starting business loans — and where you can go to get the best possible lending package.

Do Research Your Lender Carefully

What’s the first thing you should do when considering small business loan funding?

Take the time to thoroughly research your lender. Understand the different kinds of loans they offer, the loan requirements, how much money they allow you to borrow, and how they customize your specific lending package.

Speak with references and read reviews, look into the company’s financial history, and ask your lender how much experience they’ve had working with businesses like your own.

Don’t Borrow More Than You Truly Need

When you’re taking out a loan for starting a business, your first instinct might be to look for the option that allows you to borrow the largest sum of money.

But in reality, overborrowing is a quick way to get trapped in an endless cycle of debt — one that could easily cost you your business.

Work with a virtual CFO or a business accountant, and determine the least possible amount of money you can borrow to start your company. Then, borrow that amount — and not a penny more.

Don’t Risk Losing Your Assets

In a conventional business loan, you may have to put your inventory, unpaid invoices, office building, or other valuable assets up as collateral.

While you might feel like you’re willing to do anything to get the money you need ASAP, make sure you take a look at unsecured business loans first. The last thing you want is to lose everything you’ve worked so hard for because of unexpected financial circumstances.

Do Shop Around

Whether you’re applying for a long-term business loan or one that you’ll pay back within a few months, make sure you collect quotes from at least three lenders.

Remember that you can often use a lower interest rate from one lender as a bargaining chip with another. However, make sure that interest rates aren’t the only thing you focus on when looking at starting business loans.

Ensure you’re also getting the best deal when it comes to fees associated with the loan, the overall loan length, and the specific loan type.

Ready to Apply for Starting Business Loans?

Now that you’re much better informed about what you should and should not do when applying for starting business loans, it’s time for you to start researching your options and collecting quotes.

At Dealstruck, we craft unique lending packages that are specific to the needs and projected growth of your business — and we see ourselves as investors in your company.

Click here to begin the application process and start your company off on strong financial footing.