To get approval for your small business loan application, you must be able to meet the lending criteria set down. There are organizations that are more risk averse and therefore, their criteria is more stringent. The following information must be presented in order to greatly increase your chances of having a successful funding application.
What is the reason for the loan? Something that fits within the normal range and expertise of your business is what the lender will be looking for. You will need to cover each since the amount may cover a number of items.
The amount required, and the repayment term of the small business loan you want. An example would be $10,000 term 5 years payable quarterly.
Remember to include the details of how you will repay the amount borrowed.
You should have the details of security you will be able to offer to the lender as well. This will offer reassurance for the lender. If you're not prepared to put up some aspect of security, then why should they?
Your business plan which will serve to answer questions that are important and will relate to management capabilities as well as information about the market you operate in must also be included. For example, state what kind of business you are in, etc.
The 3 years financial statements should be included. Quality financial information from your accounting software must also be presented and it should be signed off by your accountant or tax advisor.
Don't forget the latest set of management accounts. Again produced from your accounting software.
Also include the accounts receivables (debtors) and payables (creditors) ageing reports.
Principals financial statements - You will need this particularly 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.
In order to iron out any glitches, you must take the time to practice presenting your case to the bank and to the lender. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). Role playing the lender and coming up with as many pointy questions as possible would also be helpful. The more time you take the better your chances will be. (But remember, don't fall into the analysis paralysis trap!)
Good luck!
What is the reason for the loan? Something that fits within the normal range and expertise of your business is what the lender will be looking for. You will need to cover each since the amount may cover a number of items.
The amount required, and the repayment term of the small business loan you want. An example would be $10,000 term 5 years payable quarterly.
Remember to include the details of how you will repay the amount borrowed.
You should have the details of security you will be able to offer to the lender as well. This will offer reassurance for the lender. If you're not prepared to put up some aspect of security, then why should they?
Your business plan which will serve to answer questions that are important and will relate to management capabilities as well as information about the market you operate in must also be included. For example, state what kind of business you are in, etc.
The 3 years financial statements should be included. Quality financial information from your accounting software must also be presented and it should be signed off by your accountant or tax advisor.
Don't forget the latest set of management accounts. Again produced from your accounting software.
Also include the accounts receivables (debtors) and payables (creditors) ageing reports.
Principals financial statements - You will need this particularly 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.
In order to iron out any glitches, you must take the time to practice presenting your case to the bank and to the lender. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). Role playing the lender and coming up with as many pointy questions as possible would also be helpful. The more time you take the better your chances will be. (But remember, don't fall into the analysis paralysis trap!)
Good luck!
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