There is no substitute for good preparation when asking for a business loan.
The lender has three main questions. How much do you want? For what will the money be used? How do you intend to repay the loan? There are several parts to the answers for each of these.
You will need a detailed list of what the money will go for. Are your expenditures reasonable in light of what you intend to accomplish? Will you be buying items which will improve your list of collateral to support the loan? The nature of what you are buying will help determine the payback period. The purchase of inventory will require a shorter payback schedule than, say, the purchase of machinery or a building addition.
Finally, how do you intend to repay the loan? Will repayment come from future projected profits? And if so, how will you repay if the profits are not forthcoming?
There are many other things to consider as well as a list of items you should expect to bring when asking for a loan. Please call the office for further information.
Tags: business loan
Written by: Doug Rodrigues