To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations 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:
1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.
2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).
3. Details of how you will repay the amount borrowed. For example, "From the increase in profits of reduced running costs of the Whizzbang Go4It"
4. Details of security you will be able to offer 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.
7. Latest Set of Management accounts. Again produced from your accounting software.
8. Accounts receivables (debtors) and payables (creditors) ageing reports.
9. Principals financial statements. ? Particularly required if some form of security is necessary.
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!
About The Author
This article was written by Neil Best, an accountant with over 15 years experience in business finance. The article and other useful business finance information including business finance information Sourcing and applying for business finance information and how to approach potential investors can be found at business finance information
cleaning service near Bannockburn ..What's your job profitability? I meet with business owners every... Read More
So it's time to invest some finances into advertising your... Read More
Where do you find more customers?How do you compete with... Read More
There are many potential niches for pressure washing companies that... Read More
Tap these treasures of ideas. The best money you can... Read More
Congratulations, you are starting a small business! You are taking... Read More
As you may know, there are many ways to incorporate... Read More
How do window cleaning franchise businesses start? It is a... Read More
Remember those drawings from science class of how a lever... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
Anyone who is serious about washing aircraft as a full... Read More
Large corporations use employee manuals to both educate employees about... Read More
Most smart entrepreneurs and all large corporations have Employee Relations... Read More
Over the years I heard the best way to learn... Read More
Incorporation in Nevada has become an attractive option for savvy... Read More
Every company has business pain, but the pain does not... Read More
A solopreneur I know disappears from my radar screen for... Read More
If you're starting your own business or currently work for... Read More
Cleaning concrete is tough and there is an easy way... Read More
Are you thinking of starting a small pressure washer business... Read More
The Federal Trade Commission which governs the franchise industry thru... Read More
Shopping for a franchise is easy if you know what... Read More
During the 1980 presidential campaign, candidate Ronald Reagan vowed, if... Read More
It is an American dream to own a business. But... Read More
Washing the exterior of a truck. Sounds easy right? Well,... Read More
pet-friendly home cleaners Mundelein ..Sacred cows take a long time to die. We get... Read More
Disclosure laws in franchising are suppose to help the consumer.... Read More
Do you need grant funding for your nonprofit organization? If... Read More
In many industries, image is one of the last things... Read More
If you are looking for a way to own your... Read More
Your on-line success is based on your efforts and yours... Read More
Now that you have invested your time, energy and money... Read More
How far away is the person you need to meet?We... Read More
Last summer the FTC put forth a report and then... Read More
What is a Virtual Assistant?A Virtual Assistant is a person... Read More
Here are some important points to take note of if... Read More
If you discovered the bottom line in your business depended... Read More
The Franchise Group at the Federal Trade Commission in all... Read More
Some things in business are relatively easy to measure ?... Read More
Washing the exterior of a truck. Sounds easy right? Well,... Read More
Many of our nations 400,000 franchisees run their businesses out... Read More
As a successful small business owner,you're accustomed to long hours;... Read More
A top executive called up me late in the night.... Read More
There are both fixed and mobile detailers. Consumers often will... Read More
Many have not experienced a fire up close. One year... Read More
You've probably heard the statistic that 95% of small businesses... Read More
While I was hard at work last week, an everyday... Read More
SBIR vs. STTR: If you are participating in the SBIR... Read More
It is estimated that 78% of all small business start-ups... Read More
At first blush this idea might be difficult to wrap... Read More
Small Business |