Getting a business loan-things to consider
Just about every company needs to borrow capital at some point. Whether you need start up capital to buy equipment for a new business, whether you need capital to buy property in order to expand, or whether your company simply needs some money in order to get through an economic slowdown, getting a business loan can be a smart move.
But getting approved for a business loan isn’t automatic. Investors want to be assured that you are worth taking a risk on. So before you apply for a business loan, here are a few things you should consider.
But getting approved for a business loan isn’t automatic. Investors want to be assured that you are worth taking a risk on. So before you apply for a business loan, here are a few things you should consider.
How will the investor see you?
Applying for a business loan is a little like applying for a job. The better your application, the more likely you will be to get approved for the loan. Investors want to see that you understand your business inside and out. You should have a clear grasp of your finances and you should be able to articulate why you need the money and how you will be able to ensue that you can pay it back.
You should include pertinent details about your company such as its assets, liabilities, cash flow, potential collateral and so forth.
And if you are meeting with investors in person, be sure to dress professionally.
You should include pertinent details about your company such as its assets, liabilities, cash flow, potential collateral and so forth.
And if you are meeting with investors in person, be sure to dress professionally.
Know how much money you really need.
When applying for a business loan, you must sit down and figure out how much money you really need. Ask for too much, and lenders could see you as untrustworthy. Ask for too little, and lenders might get the impression that you really don’t understand finances very well.
The more accurate you can be in assessing how much money you really need, the more likely you will be to get approved.
The more accurate you can be in assessing how much money you really need, the more likely you will be to get approved.
Consider using your receivables as collateral.
Did you know that if you have business to business receivables that you might be able to use these as collateral? If you are working with a broker, be sure to mention this and see if they work with any lenders who would be willing to work with these types of terms.
Understand the terms.
As with any type of loan, it is important to know what you are getting into. What is the interest rate being charged? Are there any additional fees? Are there any prepayment penalties?
When you work with a broker, your broker should be working on your behalf and they should be able to find you the best rates and terms for your situation. Obviously if you have good business credit you should be able to get better terms – but even if your credit is less than stellar, your broker should work to get you the best deal feasible.
Contact me today!
If you are looking to get a loan for your business, it is important to work with a trustworthy professional who can help get the best rates and terms possible in your situation.
Contact me today to learn more about getting a business loan.
When you work with a broker, your broker should be working on your behalf and they should be able to find you the best rates and terms for your situation. Obviously if you have good business credit you should be able to get better terms – but even if your credit is less than stellar, your broker should work to get you the best deal feasible.
Contact me today!
If you are looking to get a loan for your business, it is important to work with a trustworthy professional who can help get the best rates and terms possible in your situation.
Contact me today to learn more about getting a business loan.
