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
Lincoln Stretch rentals Alsip ..The following tips have come from a wide variety of... Read More
In my previous article, Step 1, your challenge for the... Read More
If small business had no important outside audiences, it wouldn't... Read More
Are the promoters and consultants destroying the market for Reverse... Read More
Why does a good business relationship rely on having some... Read More
Scenario OneDuring a recent presentation, a business owner was given... Read More
Manufactured and Mobile Home owners know that the weather this... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
Many experienced auto detailing professionals who have started out using... Read More
Providing high quality customer service is a must for any... Read More
While driving through Pennsylvania farmland, you have probably noticed an... Read More
SBIR Corner: FFP vs. CPFF contracts:In the SBIR/STTR world, the... Read More
If you are just starting your business, or if you... Read More
Do You Really Need a Toll-Free Number for Your Business?... Read More
Are you -- like 70 percent of small business owners... Read More
CONSIDERING COMPANY NEEDS: In identifying your needs for the internship,... Read More
Most small businesses simply go about their daily business and... Read More
If you are in the pressure washing business and are... Read More
Some of the very qualities that attract people to the... Read More
American small business is again in transition. Many employees, now... Read More
My 16 year-old daughter said, "Gee Dad! You look just... Read More
Service Cleaning Businesses must maintain their equipment in order to... Read More
As a practise gets larger & larger the associated problems... Read More
If you want to start a business in 2005, and... Read More
As a Boat Detailing Specialist, you may want to offer... Read More
Western Springs shuttle limo ..There will come a time in your business where you... Read More
Q: I really want to start my own business, but... Read More
Why should you do informative talks to smaller groups?Informative talks... Read More
Most business owners do not think of selling their companies... Read More
No matter type of business you operate you've got to... Read More
You may be in Mail Order, Direct Mail, or you... Read More
Why does a good business relationship rely on having some... Read More
Mobile carwashing is hard work, it is tough on the... Read More
There are both fixed and mobile detailers. Consumers often will... Read More
All cities have a purchasing office and/or a procurement officer.... Read More
IntroductionIt is widely recognised that Email and the Internet is... Read More
What's your job profitability? Do you know?Many business owners are... Read More
Am I the only one that does not have an... Read More
What is Business Valuation? The term business valuation is the... Read More
If you are looking for a way to own your... Read More
Here are some useful tips on how to select a... Read More
Your on-line success is based on your efforts and yours... Read More
The goals of businesses have undergone much evolution from the... Read More
You've heard it before; we're living in an information age.... Read More
The stock market is still on a wild roller coaster... Read More
Your business is making profits, but where is the cash?... Read More
During the California Recall Election, I was very interested. Without... Read More
When do you need to get more involved with the... Read More
Anyone who is serious about washing aircraft as a full... Read More
Approximately 200,000 new businesses are started each year. More people... Read More
Small Business |