Wed 9 Jul 2008
5 Tips to Get That Business Loan
When you apply for a loan for your small business, it is essential that you research and plan your moves in such a way that the bank is more than happy to give you the money.
Here are 5 tips to ensure that you get the business loan you need.
Specify Your Needs in Detail
You should provide specific details to your bank as to where the money that they will be giving you is going to end up.
This will remove any doubt, and will present your case as a genuine one. Present a logical report showing your business’ projected earnings.
You want to make sure the bank is confident that their money is safe in your hands.
Provide Sufficient Guarantees
If you can provide sufficient collateral or can arrange for a guarantor for your loan, then the bank will perceive your loan as a low-risk one.
If that happens, your chances of getting an approval will increase dramatically.
Maintain a Good Banking Record
If you propose to get a loan from your current bank, then you should maintain a good banking record.
This will impress the bank and they will probably approve the loan. If you previously applied for a loan and paid it off on time, then that will be an added advantage.
Mention Your Credit Rating
If your credit rating is very high, then by all means, mention it in your application.
The bank might ferret out the information from other sources - but if your personal and business finances are on solid ground, then there is no harm in mentioning it.
Mention Your Past to Solidify Your Future
You should mention all your significant business achievements in your application.
This is a positive move, as your bank will realize that they are dealing with a motivated and passionate businessperson - therefore making it easier for you to get the loan.
By being honest and specific in your application and by maintaining a healthy financial past, you can look forward to a wealthy future.