Nine things you must do to maximize your chances of obtaining a small business loan!

By: sanjaay

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 are 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 debtosand 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, theyll 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, do not fall into the analysis paralysis trap

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