Thursday, 17 November 2011

Things You Should Do To Maximize Your Chances Of Getting A Small Business Loan

To obtain approval for your small business loan application, you must be able to meet the lending criteria are set. Some organizations are more risk averse than others, and is therefore more stringent requirements.

To increase the chances of a successful funding application, you must submit the following information:

1. The reason for the loan. The lender is looking for something that fits within the normal range and expertise of your company. They can cover several items, so you will need to cover each.

The second amount and timing of small business loan you want. (For example, $ 10,000 term 5 years, payable quarterly).

3. Information on how you pay the loan amount. For example, "From the increase in operating costs and reduced profits Whizzbang Go4It"

4. Security details, you will be able to offer the lender. This will act as collateral for the lender. If you are not ready to implement some aspects of security, why should they?

5. You will need your business plan, which aims to answer essential questions relating to the management capacity, market information you enter for that kind of job you have, etc.

6th Accounts for 3 years. You will need to present quality financial information from your accounting software, preferably signed by your accountant or tax advisor.

7. Last set of accounts. Again produced from your accounting software.

8th receivables (debtors) and payables (creditors), aging reports.

9. The directors of the financial statements. - Especially if you need some kind of security is necessary.

If you are a new business, the focus is your business plan and security (also called collateral) you or your company can offer against the loan.

You must take the time to practice presenting your case to the bank or lender to resolve any technical problems. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It can help to act as the lender and come as tough questions as possible. The time you take the better your chances will be. (But remember, do not fall into the trap of analysis paralysis!)