Why Post-Tax Season is the Best Time to Get a Small Business Loan
Updated: Aug 25, 2021
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A lot of small business owners are already so busy running their actual business that they don’t have time to think about applying for a loan for that next project. Tax season then creates an additional burden on these proprietors, as many have to spend more time with their accountants as opposed to their customers.
The Small Business Administration (SBA) estimates that small businesses already spend about 32 hours a year on taxes, so it’s understandable that some owners might be hesitant to take any more time this month for a loan application.
What business owners often don’t realize, however, is that this is actually the best time of the year to apply, since you can simply reuse your tax documents for your loan application!
Here are the top three reasons why post-tax season is the very best time for you to apply for a small business loan:
1. Your books are already in order.
A lot of business owners don't keep their books up to date throughout the year. Come on, you can admit it - when you get busy, it's one of things that can fall behind. Lenders, however, want to see that your books are up to date before they make an underwriting decision. So if you are updating your books for your taxes anyway, all that work will already be done.
Millie's Ice Cream (Shadyside in Pittsburgh, PA) raised $49,700 from 40 community investors to buy and renovate an ice cream truck.
2. You already have an up-to-date tax return on hand.
The tax return itself is a critical piece of the underwriting packet that any lender requires. Having an up-to-date tax return for your most recent tax year makes an underwriting decision much easier.
Pittsburgh Pickle Company (Verona, PA) raised $50,000 from 33 community investors to upgrade their food processing equipment, streamlining their production process.
3. Applying now can mean money for a summer expansion project.
A lot of businesses are busiest in the summer and fall, so in terms of new equipment, new locations, or general expansion projects, now is the best time of the year to secure financing. Apply for a crowdfinanced loan with Honeycomb Credit now, and we'll get your campaign wrapped up in 30-90 days, just in time for the summer rush!
My Goodness (Regent Square in Pittsburgh, PA) raised $35,000 in 36 hours to buy refrigeration equipment before their store launch.
So, if you are a small business with an up to date tax return, balance sheet, profit and loss statement, and cash flow statement, there’s no better time than now to apply for a loan. Get the expansion capital you need quickly, so you can supercharge your business this summer.
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