Coming Soon
Subscription Marketplace - Buy and sell subscription products and services
803 views
in Articles by
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!

Please log in or register to reply to this topic.

Related topics

0 replies 511 views
posted in Articles by AfternoonFay
0 replies 1,348 views
0 replies 778 views
posted in Articles by Conjursa
0 replies 549 views
posted in Articles by Hawkward
0 replies 549 views
posted in Articles by PlushSeal
0 replies 734 views
posted in Articles by TrainedGuy
0 replies 577 views
posted in Articles by HuggingDuck
0 replies 1,122 views
0 replies 755 views
0 replies 493 views
posted in Articles by HairyFoal
0 replies 646 views
posted in Articles by PerfumedNecromancer
0 replies 514 views
posted in Articles by CheeryGrin
0 replies 559 views
0 replies 537 views
posted in Articles by Explorer
0 replies 726 views
0 replies 513 views
posted in Articles by Titank
0 replies 1,590 views
posted in Articles by BunBunny
0 replies 728 views
posted in Articles by Sumogre
0 replies 1,683 views
posted in Articles by GamerAlpaca
Connect with us:
...