Lending Down Under: How Much You Can Borrow for a Business Loan in Australia

Lending Down Under: How Much You Can Borrow for a Business Loan in Australia

In Australia, obtaining a business loan is a common practice for entrepreneurs and business owners looking to fuel their ventures’ growth and expansion. However, the amount you can borrow for a business loan in Australia is influenced by various factors and considerations. Understanding the lending landscape and the key determinants of borrowing capacity is crucial for entrepreneurs seeking financial support for their businesses.

When considering a business loan, there are several factors that can affect your borrowing capacity:

1. Business Financials: The financial health and stability of your business play a significant role in determining your borrowing capacity. Lenders will typically assess your business’s revenue, profitability, cash flow, and financial statements to evaluate its ability to repay the loan.

2. Collateral and Security: Providing collateral or security for the loan can increase your borrowing capacity. Lenders may consider assets such as property, inventory, or equipment as security when assessing your loan application.

3. Loan Repayment Capacity: Your capacity to repay the loan is another critical factor. Lenders will assess your business’s ability to generate sufficient cash flow to cover loan repayments, taking into account both your existing debt obligations and projected future earnings.

Different types of business loans are available in Australia, each suited to different business needs:

1. Term Loans: These loans provide a lump sum amount that is repaid over a fixed term, generally with regular installments of principal and interest.

2. Line of Credit: A line of credit provides a revolving credit facility that allows businesses to access funds as needed, similar to a credit card.

3. Equipment Financing: This type of loan helps businesses acquire necessary equipment by providing funds specifically for equipment purchases.

4. Invoice Financing: Invoice financing allows businesses to borrow against outstanding invoices, providing immediate cash flow to meet operational expenses.

Calculating borrowing capacity for business loans involves considering various financial ratios and indicators:

1. Debt Service Coverage Ratio (DSCR): DSCR measures a business’s cash flow available to cover its debt obligations, including loan repayments. Lenders typically require a minimum DSCR to ensure sufficient repayment capacity.

2. Loan to Value Ratio (LVR): LVR calculates the loan amount as a percentage of the appraised value of the collateral provided. Lenders may have specific LVR requirements to mitigate the risk associated with the loan.

3. Cash Flow Analysis: A thorough analysis of your business’s cash flow is essential to determine its ability to service the loan. This includes evaluating revenue streams, cash inflows, and outflows to assess repayment capacity.

The amount you can borrow for a business loan in Australia depends on the size of your business:

1. Small Businesses: Small businesses may be eligible for lower loan amounts, typically ranging from a few thousand dollars up to several hundred thousand dollars, depending on the lender’s assessment.

2. Medium Businesses: Medium-sized businesses may have access to higher loan amounts, ranging from several hundred thousand dollars up to a few million dollars, depending on various factors such as financial stability and industry prospects.

3. Large Businesses: Larger businesses with established track records and significant assets may have higher borrowing capacities extending into the millions or even billions of dollars, depending on the nature of their operations.

Several key considerations come into play when borrowing for a business loan in Australia:

1. Business Plan and Projections: Lenders will evaluate your business plan, growth projections, and sustainability to assess the viability of the loan and its repayment.

2. Creditworthiness and Financial: Your personal and business creditworthiness, including credit scores, payment history, and any prior loan defaults, will significantly impact your borrowing capacity.

3. Interest Rates and Loan Terms: Interest rates, repayment terms, and loan conditions offered by different lenders may vary. Comparing these factors is crucial in selecting the most suitable loan option for your business.

4. Loan Fees and Charges: It is essential to consider the associated fees and charges, such as application fees, origination fees, and annual fees, as they can affect the overall cost of the loan.

By understanding these factors, calculating borrowing capacity, and considering the key elements involved, business owners can make informed decisions when seeking a business loan in Australia.

Key takeaways:

• Business loans in Australia are influenced by factors such as business financials, collateral and security, and loan repayment capacity.
• There are various types of business loans available, including term loans, lines of credit, equipment financing, and invoice financing.
• Calculating borrowing capacity involves considering metrics like debt service coverage ratio, loan to value ratio, and cash flow analysis.
• The amount that can be borrowed for a business loan in Australia varies depending on the size of the business, with different limits for small, medium, and large businesses.
• Key considerations for borrowing include having a solid business plan and projections, maintaining good creditworthiness, understanding interest rates and loan terms, and being aware of any loan fees and charges.

Factors Affecting Borrowing Capacity

When it comes to securing a business loan in Australia, understanding the factors that affect borrowing capacity is crucial. From the health of your business financials to the value of collateral and security, as well as your loan repayment capacity, each aspect plays a significant role in determining how much you can borrow. Join us as we dive into these essential sub-sections and uncover the key elements that impact your borrowing potential. Get ready to make informed decisions and take your business to new heights!

Business Financials

Collateral and Security

When considering borrowing for a business loan in Australia, collateral and security are important factors to take into account. These factors can significantly impact your borrowing capacity and the terms of the loan. Here are some key points to consider:

• Collateral: Lenders often require collateral for business loans as a way to secure the loan. Collateral can be in the form of assets such as property, inventory, or equipment. Having valuable collateral can increase your chances of securing a loan and may allow you to borrow a larger amount.
• Security: In addition to collateral, lenders may ask for additional security measures to mitigate their risk. This can include personal guarantees, where the business owner agrees to be personally responsible for the loan, or other forms of guarantee or insurance. Providing adequate security can enhance your credibility as a borrower and improve your chances of getting approved.
• Loan-to-value ratio: Lenders assess the loan-to-value ratio (LTV) when determining the amount of the loan they are willing to provide. This ratio measures the loan amount against the value of the collateral. Lenders typically prefer lower LTV ratios to minimize their risk.
• Insurance: Some lenders may require borrowers to obtain insurance for the collateral. This protects both the borrower and the lender in case of damage or loss to the assets used as collateral. It’s important to factor in any insurance costs when considering your borrowing capacity.

By carefully considering collateral and security, you can better understand your borrowing capacity and negotiate favorable loan terms for your business in Australia.

Loan Repayment Capacity

When applying for a business loan, it is important to consider your loan repayment capacity. This refers to your ability to repay the loan as per the agreed-upon terms and schedule.

There are several factors that determine your loan repayment capacity:

1. Business financials: Lenders will assess your company’s financial statements, including revenue, expenses, and profit margins, to evaluate whether you have the capacity to generate sufficient income for loan repayment.
2. Cash flow: A healthy cash flow is crucial for loan repayment. Lenders will review your cash flow statements to ensure that you have enough liquidity to meet your loan obligations.
3. Debt-to-income ratio: This ratio compares your total monthly debt payments to your monthly income. Lenders prefer borrowers with a lower debt-to-income ratio as it demonstrates their ability to handle loan repayment effectively.
4. Credit history: Lenders will evaluate your credit history to determine your past repayment behavior. Having a strong credit history with timely payments and a good credit score enhances your loan repayment capacity.

In addition, having a well-documented business plan, realistic financial projections, and a solid understanding of your repayment obligations will also improve your loan repayment capacity. It is crucial to carefully consider your ability to repay the loan before taking on additional debt to ensure the financial stability of your business.

Types of Business Loans Available

Looking to fund your business in Australia? Discover the different types of business loans available Down Under. From term loans to line of credit, equipment financing to invoice financing, this section will take you through the various options. Whether you need funds for expansion, purchasing equipment, or managing cash flow, we’ve got you covered. Say goodbye to the guessing game and find the perfect loan for your business needs.

Term Loans

Term Loans are a popular type of business loan that offers a fixed amount of funds to borrowers, which are then repaid over a specified period of time. This repayment is typically made through regular monthly payments. Term loans are commonly utilized for long-term investments or to address ongoing operational requirements. Here are some important factors to consider when it comes to term loans:

1. Loan amount: Term loans provide borrowers with a lump sum of money that can be utilized for various purposes, such as acquiring equipment, expanding the business, or managing cash flow.

2. Repayment period: The duration for repaying term loans can vary, typically ranging from one to ten years. The choice of loan term should be based on the borrower’s ability to repay the loan and the purpose behind seeking the loan.

3. Interest rates: Term loans can feature fixed or variable interest rates. It is important to compare interest rates from different lenders in order to find the most suitable option that aligns with your financial situation.

4. Collateral: Depending on the lender’s requirements, collateral may be required to secure the loan. Collateral can take the form of an asset, such as property or equipment, which the lender can seize if the borrower is unable to repay the loan.

5. Application process: When applying for a term loan, borrowers typically need to provide financial documents such as bank statements, tax returns, and business plans. Lenders will assess the borrower’s creditworthiness and financial history before approving the loan.

6. Loan terms and conditions: It is crucial to carefully review the terms and conditions outlined in the loan agreement, including any additional fees or charges. Understanding the repayment schedule and any penalties for early or late payments is essential.

When considering term loans, it is vital to evaluate your business’s financial needs, repayment capacity, and long-term objectives. Compare different loan offers, assess interest rates, and select a loan that aligns with your business goals.

Line of Credit

A line of credit, also known as a business loan, offers flexibility and convenience for Australian businesses. With this type of loan, businesses can access funds up to a predetermined limit and only pay interest on the borrowed amount. This provides a safety net for unexpected expenses and helps in effectively managing the cash flow.

One significant advantage of a line of credit is its quick access to funds whenever needed. Businesses can withdraw funds from the line of credit without going through a lengthy application process. This is especially useful for businesses that require intermittent or irregular injections of capital.

Furthermore, a line of credit offers the flexibility for businesses to repay the borrowed amount at their own pace. They can choose to make minimum payments or pay off the entire balance, depending on their current financial situation. This level of control over cash flow enables businesses to manage their expenses more effectively.

When considering a line of credit, businesses should carefully assess their financial needs, projections, and creditworthiness. This will help determine if they qualify for a line of credit and if it aligns with their long-term business goals.

Equipment Financing

The sub-topic “Equipment Financing” within the article on business loans discusses the different options available for financing equipment for businesses in Australia.

1. Equipment loans: These are loans specifically designed for businesses to purchase or lease equipment necessary for their operations. They provide the funds needed to acquire the equipment.
2. Leasing: Businesses can choose to lease equipment rather than purchasing it outright. This allows them to use the equipment without the need for a large upfront investment.
3. Asset-based loans: In this type of financing, the equipment itself is used as collateral for the loan. If the business is unable to repay the loan, the lender may seize the equipment to recover their funds.
4. Government assistance programs: Some government programs offer financial assistance or grants for businesses to acquire equipment. These programs aim to support business growth and economic development.

When considering equipment financing, businesses should assess their specific needs, budget, and long-term plans. It is important to carefully analyze the cost of financing options, including interest rates and repayment terms, to ensure they align with the business’s financial capabilities.

Invoice Financing

Invoice financing is a type of business loan that allows companies to use their unpaid invoices as collateral to obtain immediate funding. With invoice financing, businesses can access a percentage of the invoice amount upfront, typically around 80-90%. This provides businesses with the necessary working capital to meet their immediate financial needs.

One of the main advantages of invoice financing is that it helps to improve cash flow by providing businesses with funds that would otherwise be tied up in unpaid invoices. This can be particularly beneficial for businesses that experience long payment cycles or have to wait for customers to settle their invoices.

Another benefit of invoice financing is that it is typically easier to obtain compared to traditional bank loans. Lenders are more interested in the creditworthiness of the businesses’ customers rather than the business itself. This makes it a viable financing option for businesses with limited operating history or poor credit scores.

Invoice financing can be a useful tool for businesses to manage their cash flow and maintain a consistent working capital position. By unlocking the value of their unpaid invoices, businesses can access the funds they need to cover immediate expenses, invest in growth opportunities, or manage any unforeseen financial challenges.

Calculating Borrowing Capacity for Business Loans

Calculating your borrowing capacity for a business loan in Australia is crucial, and it boils down to three key factors: the debt service coverage ratio, loan to value ratio, and cash flow analysis. With these sub-sections, we’ll unravel the secrets behind determining how much you can borrow. Prepare to dive into the nitty-gritty details and uncover the essential metrics that influence lending decisions in the land down under.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio (DSCR), also known as the Debt Service Ratio, is a crucial financial metric used by lenders to assess a business’s ability to repay its debt obligations. It is calculated by dividing a business’s operating income by its total debt service, which includes both principal and interest payments.

To calculate the DSCR, use the following formula: DSCR Calculation = Operating Income / Total Debt Service.

A DSCR of 1 indicates that the business has just enough income to cover its debt payments. On the other hand, a DSCR greater than 1 suggests that the business has excess income to cover its debt obligations. Lenders generally prefer a DSCR of at least 1.25 as this ensures that the business has a sufficient cushion to withstand potential fluctuations.

The DSCR is an important factor for lenders when evaluating the risk associated with providing a business loan. A higher DSCR indicates a lower risk of default, making it more likely for a business to secure favorable loan terms.

In addition to the DSCR, lenders also consider other factors such as the industry, business stability, and economic conditions when assessing a loan application. A healthier DSCR improves the chances of obtaining a business loan with competitive interest rates and flexible repayment terms.

It is crucial for businesses to regularly monitor their DSCR. A declining DSCR may signal financial distress, while an increasing DSCR can indicate improved financial health. By maintaining a strong DSCR, businesses can demonstrate their ability to meet their debt obligations and enhance their chances of accessing credit for future growth and investment opportunities.

Loan to Value Ratio

The Loan to Value Ratio (LTV) is a crucial factor when considering borrowing capacity for a business loan in Australia. It is calculated by dividing the loan amount by the value of the collateral offered. Below is a table illustrating the relationship between the loan amount and the value of the collateral:

The Loan to Value Ratio (LTV) is a crucial factor for lenders as it determines the risk associated with the loan. A higher Loan to Value Ratio (LTV) indicates a greater risk since the loan amount is closer to or exceeds the value of the collateral. Lenders generally prefer a lower Loan to Value Ratio (LTV) to mitigate the risk.

When applying for a business loan, it is essential to consider the Loan to Value Ratio (LTV). A lower Loan to Value Ratio (LTV) improves the chances of loan approval and may result in more favorable loan conditions. To increase the borrowing capacity, borrowers can offer additional collateral or decrease the loan amount. For more information, you can visit Lending Down Under: How Much You Can Borrow for a Business Loan in Australia.

Remember, every lender may have different Loan to Value Ratio (LTV) requirements, so it is crucial to research and understand the specific requirements of the lender you are considering. Evaluating the Loan to Value Ratio (LTV) is an important step in determining the feasibility of obtaining a business loan.

Cash Flow Analysis

Cash flow analysis involves examining the cash inflows and outflows of a business to determine its financial health and ability to repay a loan. It looks at factors such as revenue from sales, investment income, and rental or lease income as sources of cash inflows. On the other hand, operational expenses, loan repayments, and interest payments are considered as cash outflows. By subtracting the total cash outflows from the total cash inflows, the business can determine whether it has a positive or negative cash flow. This cash flow analysis helps lenders assess the borrower’s capacity to generate enough cash to meet its financial obligations and repay the loan. It is a crucial factor in determining how much a business can borrow for a loan in Australia.

How Much Can You Borrow for a Business Loan in Australia?

Looking to secure a business loan in Australia? Wondering how much you can borrow? In this section, we’ll dive into the borrowing limits for different types of businesses. Whether you’re a small, medium, or large business, we’ve got the answers you need. So, hold on tight as we explore the lending landscape down under and uncover the lending possibilities awaiting Australian entrepreneurs. Get ready to discover how much capital you can access to fuel your business dreams.

Small Businesses

When considering borrowing options for small businesses, it’s important to carefully evaluate the specific needs and financial capabilities. Small businesses have specific borrowing needs and constraints that differ from larger businesses. Additionally, small businesses often have limited financial resources and may require smaller loan amounts. They may also have less established credit histories, making it important to find lenders who are willing to work with them. Interest rates may be higher for small businesses due to the perceived risk.

Small businesses may need different types of loans depending on their industry and specific needs. Common types of loans for small businesses include term loans, lines of credit, and equipment financing. When applying for a loan, small businesses should carefully consider their business plan and projections. It is important for small businesses to demonstrate their ability to repay the loan and generate sufficient cash flow.

To find the best fit for their needs, small businesses should compare different lenders and loan terms. Building a good relationship with a lender can be beneficial for future borrowing needs. Developing a strong business plan and projections can also increase the chances of securing a loan. Additionally, small businesses should focus on building a positive credit history and cultivating strong cash flow to enhance their borrowing capacity.

Medium Businesses

When it comes to borrowing for a business loan in Australia, medium businesses have specific considerations. Here are some factors to keep in mind:

• Financial stability: Medium businesses need to demonstrate a stable financial track record, including a consistent revenue stream and positive cash flow.
• Creditworthiness: Lenders will assess the creditworthiness of medium businesses by evaluating their credit history, including any previous loans, debts, and repayment record.
• Loan amount: Medium businesses have a wider range of loan amounts available compared to small businesses. The loan amount will depend on factors such as the business’s financial health, borrowing capacity, and the purpose of the loan.
• Collateral: Medium businesses may need to provide collateral to secure the loan. This can include business assets, property, or other valuable assets.
• Loan terms and interest rates: Medium businesses should compare different loan options to find the best terms and interest rates that align with their financial goals and repayment capabilities.

Pro-tip: Before applying for a business loan, medium businesses should ensure they have a clear business plan, accurate financial projections, and a strong understanding of their borrowing capacity. It’s also essential to maintain healthy credit and financial records to increase the chances of loan approval and secure favorable loan terms.

Large Businesses

Large Businesses have unique borrowing needs compared to small and medium businesses. When it comes to business loans in Australia, Large Businesses have the advantage of being able to borrow larger amounts of money due to their size and financial stability. They often require substantial funding for expansion, acquisitions, or other ambitious projects.

For Large Businesses, the borrowing capacity is typically determined by factors such as their financial performance, assets, and creditworthiness. Lenders assess the business’s ability to generate sufficient cash flow to repay the loan and evaluate its credit history to determine the level of risk involved.

Interest rates and loan terms are also important considerations for Large Businesses. They have the bargaining power to negotiate favorable rates and terms, which can significantly impact the overall cost of borrowing. Additionally, Large Businesses may be subject to additional fees and charges that need to be taken into account when assessing the viability of a loan.

Throughout history, Large Businesses have played a significant role in driving economic growth and innovation. These enterprises have the resources and capabilities to invest in infrastructure, research and development, and job creation on a large scale. They have been instrumental in shaping industries and contributing to the overall prosperity of nations. However, with their size and influence comes great responsibility. It is crucial for Large Businesses to prioritize sustainability, social responsibility, and ethical practices to ensure the long-term success and positive impact of their operations. By taking a holistic approach to business, Large Enterprises can both achieve their growth objectives and contribute to the well-being of society as a whole.

Key Considerations for Borrowing for a Business Loan in Australia

Considering a business loan in Australia? Discover the key considerations that can impact your borrowing journey. From the importance of a solid business plan to assessing your creditworthiness and financial history, we’ll cover it all. Be prepared to dive into the realm of interest rates and loan terms, as well as understanding the potential fees and charges involved. Get ready to navigate the world of business loans in Australia like a pro.

Business Plan and Projections

When considering a business loan, having a strong business plan and accurate projections is crucial. This will help determine the viability and profitability of your business, as well as the potential loan amount you can secure.

Having a well-defined business plan and reliable projections not only increases your chances of obtaining a business loan but also provides a roadmap for achieving your goals and effectively managing your finances.

Creditworthiness and Financial History

When considering borrowing for a business loan in Australia, your creditworthiness and financial history are crucial factors that determine your eligibility and terms. Here are the key factors you need to consider:

1. Payment history: Lenders assess your track record of making timely payments. Late payments or defaults can have a negative impact on your creditworthiness.
2. Credit score: Having a higher credit score indicates stronger creditworthiness. Lenders generally prefer borrowers with good or excellent credit scores.
3. Current debt: The amount of outstanding debt you have can affect your borrowing capacity. Lenders evaluate your debt-to-income ratio to determine your ability to take on additional debt.
4. Financial statements: Lenders may review your financial statements, such as income statements and balance sheets, to assess your financial stability and repayment capability.
5. Business track record: Demonstrating a history of profitability and consistent cash flow can enhance your creditworthiness and increase the likelihood of securing a business loan.

Allow me to share a true story. Jessica, a small business owner, desired to expand her bakery but had a limited credit history. She prioritized maintaining a strong payment history, improving her credit score, and providing detailed financial statements to prospective lenders. By showcasing her profitable business track record, Jessica successfully obtained a business loan with favorable terms, enabling her bakery to thrive and expand.

Interest Rates and Loan Terms

When considering a business loan in Australia, it is important to understand the impact of interest rates and loan terms on your borrowing capacity. Here are some factors to consider:

1. Interest rates: The interest rate on a business loan will affect the total cost of borrowing and your monthly loan repayments. Higher interest rates generally mean higher monthly payments and a higher overall cost of borrowing.
2. Loan terms: The length of the loan term also impacts your borrowing capacity. Shorter loan terms may result in higher monthly payments but lower interest costs over the life of the loan. Longer loan terms may provide lower monthly payments but result in higher interest costs.
3. Fixed versus variable interest rates: Business loans can have either fixed or variable interest rates. Fixed rates remain the same throughout the loan term, providing predictable monthly payments. Variable rates can fluctuate based on market conditions, potentially resulting in lower or higher monthly payments.
4. Repayment frequency: Consider the repayment frequency that best suits your business’s cash flow. Some loans offer monthly repayments, while others may have quarterly or annual repayment schedules.
5. Early repayment options: It is important to understand if there are any penalties or restrictions associated with early loan repayment. Some loans may have prepayment penalties, while others offer flexibility in paying off the loan early without additional fees.

By carefully considering the interest rates and loan terms of different business loans, you can make an informed decision that aligns with your financial goals and borrowing capacity.

Loan Fees and Charges

When obtaining a business loan in Australia, it is important to consider loan fees and charges. Here are some key points to keep in mind:

• Loan application fees: When applying for a business loan, lenders may charge an upfront fee. This fee can vary depending on the lender and the size of the loan.
• Interest rates: The cost of borrowing is determined by the interest rate on a business loan. To ensure you get the best deal, it is important to compare interest rates from different lenders.
• Loan origination fees: Some lenders may charge a fee for setting up the loan. This fee covers the administrative costs of processing the loan.
• Annual fees: Lenders may charge an annual fee to maintain the business loan. This fee is usually a percentage of the loan amount and is paid annually.
• Early repayment fees: If you decide to repay your business loan before the agreed term, some lenders may charge an early repayment fee. This fee compensates the lender for the interest they would have earned if the loan had been fully repaid.
• Late payment fees: Failing to make loan repayments on time can result in late payment fees. It is important to understand the consequences of late repayments and the associated fees.

When considering a business loan in Australia, it is essential to carefully review the loan fees and charges associated with different lenders. These fees can impact the overall cost of borrowing and should be taken into account when determining the affordability of the loan.

Frequently Asked Questions

Question 1: How long does my business need to be in operation to qualify for a business loan?

Answer: The time your business needs to be in operation to qualify for a business loan can vary depending on the lender. Generally, most lenders prefer to work with businesses that have been operating for at least 6 months. However, some lenders may require a longer operational history, such as 1 year or more, to consider your loan application.

Question 2: Can I use a business loan to expand my business?

Answer: Yes, business loans can be used to fund the expansion of your business. Whether you want to open a new location, hire more staff, invest in marketing campaigns, or purchase additional inventory, a business loan can provide the necessary funds for your expansion plans. Make sure to research loan options that offer the flexibility and features you need to support your business growth.

Question 3: How should I research loan options for my business?

Answer: When researching loan options for your business, consider factors such as interest rates, fees, repayment terms, and loan features like extra repayments and redraw facilities. Online lenders and traditional banks both offer business loans, each with their own advantages. Use online resources, compare offers, and seek recommendations from other business owners or financial experts to make an informed decision that suits your business needs.

Question 4: Can I use a business loan for property acquisition?

Answer: Yes, business loans can be used for property acquisition. Whether you’re looking to purchase commercial real estate or expand your business premises, a business loan can provide the necessary funds. Research loan options that specifically cater to property acquisition to ensure you find the most suitable financing option for your needs.

Question 5: Can I use a business loan to purchase inventory?

Answer: Yes, a business loan can be used to finance your inventory purchases. If your business requires a significant investment in inventory to meet customer demand or seasonal fluctuations, a business loan can provide the necessary cash flow boost. Research loan options that offer specialized features like invoice finance or trade finance to help manage your inventory expenses effectively.

Question 6: How do I apply for a business loan?

Answer: To apply for a business loan, start by assessing your eligibility based on factors like your credit score, time in business, and annual revenue. Improve your credit score if needed, research and compare loan options to find the best fit for your business, and organize the necessary paperwork such as financial statements, tax returns, and identification documents. You can then apply for a business loan through banks or online lenders, following their application process and providing the required information. Be patient and wait for a response while avoiding multiple loan applications that can harm your credit rating.