Business & Finance
9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan
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loan application, you must be able to
meet the lending criteria set down. Some organ-
isations are more risk averse than others, and
will therefore have more stringent criteria. To
vastly increase your chances of a successful
funding application, you will need to present
the following information:
to the lender. This will act as reassurance for
the lender. If you’re not prepared to put up
some aspect of security, then why should
they?
5.
You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.
6.
3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.
8. Accounts receivables (debtors) and payables (creditors) ageing reports.
If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.
You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)
Good luck!
This article was written by Neil Best, an accountant with over 15 years experience in business finance. The article and other business finance information can be found at http://www.smallbusinessfinancetips.com
