Applying for a small business loan – what do I need to consider?
When the time comes to acquire a much needed injection of funds into your business, it is important to be clear on exactly what you need to be aware of.
It may be that your business is right at the start of its journey or that you are looking for new funds to provide impetus in a frustrating financial climate. Either way, there are certain key parts of the process that you need to be prepared for in order to put forward a credible and cogent case for a small business loan.
Outlining a business profile
It is important to be clear on every single facet of how your business operates, as a lender will certainly want to ask questions that delve into the day-to-day running of the company. Compiling a business profile that covers topics such as who your customers are, who your existing clients are, what product you supply and how many employees you have will allow a lender to take a measured decision about whether they wish to offer you a loan.
Propose a repayment plan
One of the first things that a lender will wish to discuss is whether or not you have a plan in place for the repayment of the loan. This plan needs to be based on sound financial projections and if it is credible and realistic then a lender will view you in a more positive light.
Keep the lines of communication open
It is also a very good idea to make sure a potential lender has all of the relevant contact details they need in order to get hold of you as and when they need to. This will also allow you to track the loan application if its status is still pending.
A corporate insolvency specialist can assist business leaders, financial directors and stakeholders to deliver sustainable solutions for their business.
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