You may need a business loan because you are having trouble with your working capital, or you may want a solid investment in your company so that you can focus on marketing or advertising.
Many businesses apply for business finance for various reasons. Start-up companies may need a loan so that they can get their business off the ground, where as more established companies may want to train staff or set up a new location.
Whatever the reason for you needing to apply for a business loan, there are some tricks that you can use to help the success of your application to your lender.
A lender will want to know that they are investing in a reliable business that is able to repay the entire loan in full and on time. To help them make their judgement, they are likely to look at your credit score.
Your credit score will display all of the information that they need to see, including any previous loans that you have had. If you are a start-up business, it may be difficult to prove your credit score because you simply have not had any finance in the past to base a judgement on. In this case, they may look at your own personal credit score instead.
Try to ensure that this is as good as possible beforehand. There are various things you can do to help improve your credit score. For example, take out a company credit card and use it regularly – but make sure it is repaid on time each month in full.
Business Plan = Business Loan
Creating a business plan is a very important part of your application when applying for a business loan from a lender.
Your business plan should detail all of the information about your business, including the information about the industry that you are in. It should also include detailed information about your competitors in this field and explain why you as a business are in a lucrative spot compared to these other companies. If your company has a niche, you should really take advantage of this and explain exactly why your company stands out from the crowd.
Give the correct figures
In your business plan, you should give all of the correct figures about your revenue, your overheads and any other information about your assets. This will help the lender to evaluate your application and decide whether you are able to afford the loan or not.
Show some personality
A lender like to see that you are real person to invest in, so make sure that you show your personality and show the lender what you are all about. In every meeting, act professional, well researched and willing to give as much information as possible. You need to show your passion for your business.
Author credit: https://www.capiota.co.uk