6.27.2013

9 Things You Must Do To Maximize Your Chances Of Having A Small Business Loan

To get approval for your small business loan application, you should be able to meet the lending criteria set. Some organizations are more at risk than others, and therefore have more stringent criteria. To greatly improve your chances of a successful funding application, you must indicate the following information: 

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. That number could include some of the items, so you will need to close each.

2. The required amount, and payment terms a small business loan you want. (Eg $ 10,000 term 5 years, payable quarterly) 0.

3. Details about how you will pay back the amount borrowed. For example, "From the increase in profits reduces the running costs of Wiz-blast go4it" 

4. Details of security you can offer to the lender. This will act as collateral for the lender. If you are not willing to put up some aspect of security, then why would they? 

5. You must 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 of financial statements. Need to present quality financial information from your accounting software, preferably signed by an accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Receivables (debtors) and payables (creditors) reports.

9 Aging. Guru financial statements. - 

Especially if needed some form of security necessary.If you are a new company, the emphasis will be on your business plan, and the security (also called collateral) you or your business can provide against the loan.You should take the time to practice showing your case to the bank or lender to eliminate interference. Practice colleagues and family (you never know, maybe so that they are impressed, they'll invest or lend!). This can help to portray the lender and generate more pointed question might be. The more time you take the better your chances will be. (But remember, do not fall into the analysis paralysis trap!) Good luck!

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