Getting a business loan
A business loan used to be a lot easier to get. Because of the recent financial meltdown, banks are scared and therefore not very eager to take business loan applications into consideration. Regular loans are still a very good product for a bank, but business loans are considered 'shakier' and higher risk. This means that you will have to back up your application for a business loan.
Your application will be meticulously screened by bank employees. You will have to be able to back up your plans and goals with cold hard facts. Banks basically want to know if you will be able to pay the loan back and what they can get when you decide not to pay it back.
Collateral is one of the most important factors if you want to get a business loan. The ideal situation is to prove to a bank that you don't need the loan. But then, why would you apply for a business loan if you don't need one? That's when planning and preparation come in handy.
If you want your request for a business loan to be looked at seriously, you will have to prepare for it. Make sure that you have the collateral listed, that you can show your numbers and history and that you can back all this up with good arguments. Also, make sure you pay attention to the way you look when you go in and apply for a loan. You might be comfortable in jeans and a T-shirt, but this is one of those occasions you might want to wear a suit. Looking the part is more important than you might think.
Even when banks tighten their policies, getting a business loan is still possible. The right preparation gets you a long way towards your business loan goals.
Your application will be meticulously screened by bank employees. You will have to be able to back up your plans and goals with cold hard facts. Banks basically want to know if you will be able to pay the loan back and what they can get when you decide not to pay it back.
Collateral is one of the most important factors if you want to get a business loan. The ideal situation is to prove to a bank that you don't need the loan. But then, why would you apply for a business loan if you don't need one? That's when planning and preparation come in handy.
If you want your request for a business loan to be looked at seriously, you will have to prepare for it. Make sure that you have the collateral listed, that you can show your numbers and history and that you can back all this up with good arguments. Also, make sure you pay attention to the way you look when you go in and apply for a loan. You might be comfortable in jeans and a T-shirt, but this is one of those occasions you might want to wear a suit. Looking the part is more important than you might think.
Even when banks tighten their policies, getting a business loan is still possible. The right preparation gets you a long way towards your business loan goals.
About the Author:
WIC is an institution that dispenses advice in English and Dutch on the subjects of loans, zakelijk lenen and mini lening
posted by Credit Counseling at
5:21 AM
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