When you’re trying to first get a business loan, you need to remember that it’s not nearly as easy as it may seem. If it doesn’t seem easy you’ve caught the idea. Getting a business loan is not going to be simple, you need to be ready when you walk in and this is exactly how you manage to impress the loan officer.
Get your things together
Normally your business will have to have been making money for three solid years before any loan will be passed in your name. Your credit history will be scrutinized and every mistake in your credit report could leave you denied. You don’t want that to happen to you. You’re going to have to ensure that no matter what you can pay that loan, even if that means putting your house on the line. If your business is profitable enough though you may be able to simply use the business to cover the loan instead of risking your home.
Let them know your story
Tell them your experiences and how you’ve led your company thus far, and let them know why you need this money. If they don’t think you need the loan then they aren’t going to give it to you, it’s as simple as that. Let them know who you are, has there been financial growth recently? Are you getting ready to ally yourself with another much larger company? You need to prepare your answer for why you need it, and why it should be given to you. If you don’t know those answers don’t try to go get that loan yet.
Try local banks first
Larger banks at the national level are less likely to even look at your request. Especially if you don’t have proper collateral or three years of profitable business under your belt. Local banks may be more lenient on you and your situation.
Short Term Financing
When your company faces shortages in cash finding a new way to finance is a great profitable way to support your business in a financial bind. Using factoring, you can sell company accounts for a short term loan worth 80 percent of the accounts. Ensuring that in a time of financial trouble you aren’t left out in the rain.
When you’re looking for a business loan you may have some difficulties, especially if this is your first loan and you don’t have any credit in your name. These few tips though will ensure that you’re able to get on your feet and out into the real business world.
Get your things together, let banks know your story, try the local banks first and remember short-term financing. These tips will make sure that no matter what you’re going through business wise you have the best chance to secure that much-needed loan. It’ll take a lot of paperwork and luck, but if it’s worth it if you stick with it. Stop struggling to figure out what you’re doing and use these tricks to put yourself on the path to financial, business and personal success. No one is going to do it for you, now what are you waiting for?
Sourced from Inc. by Marla Tabaka
Photo: Thinkstock