Maximizing your chances
Using a commercial finance specialist source and organize your loans to small businesses will give you access to a wider range of funding sources that a bank can offer.
Business owners in the USA and Canada use Commercial Finance Brokers to their source of loans more than other territories.
Although not as well known in other countries (the United Kingdom for example, 70% of business owners first to their bank - M & A March 2003), they are if you look for them, and using one will be a great help to increase your chances of getting a loan, and indeed any other form of financing for small businesses.
You May also consider a private loan of family members, or soliciting funds from an angel investors (which is generally more interested in equity participation). Although rarely used, these sources are untapped at least worth trying!
9 things you must do to maximize your chances of getting a loan to small businesses
To obtain the approval of your loan application, you must be able to meet the lending criteria established. Some organizations are more cautious than others and therefore have more stringent criteria. To increase your chances of a successful application for funding, you must submit the following information.
1. The reason for this loan. The lender will be looking for something that falls within the normal range and expertise of your business. The May cover a number of questions, then you will need to cover everyone.
2. The amount required, and repayment of loans to small businesses that you want. (eg $ 10,000 5-year term, payable quarterly).
3. Details of how you repay the amount borrowed. For example, "The increase in profits of reducing operating costs of the Whizzbang Go4It underway and cash flow.
4. Details of security, you'll be able to offer the lender. N'aura other effect than to reassure the lender. If you're not ready to implement some aspects of security, so why should they?
5. You must include your business plan that will be used to answer key questions relating to the management capabilities, information on the market in which you operate, and the type of business you are etc.
6. 3-year financial statements. You will need to submit financial information quality of your small business book-keeping software, preferably signed by your accountant or tax adviser.
7. Last series of accounts. Again produced from your accounting software.
8. Accounts receivable (expense) and debt (creditors) ageing reports.
9. The directors of financial statements. -- In particular necessary if some form of security is necessary.
If you are a new company, emphasis will be on your business plan, and security (also called collateral), you or your company can provide against the loan.
If you're relying on your accountant to provide you with the information listed above, I recommend you make a small investment in small enterprises book-keeping software such as QuickBooks. The accounting software will prepare the necessary reports of your data entries, and you can also reduce the amount of time, the accountant must prepare your returns, which should reduce their expenses, more than pay for investment.
You should take the time to practice presenting your business proposal ready to iron out any problems. Practice on your colleagues and family (you never know, they could be so impressed, they will invest or lend).
It will also help if you play the role of lender and find with the greatest number of objections to accept the agreement as possible. The more time you take the better your chances of being. (But remember not to fall into the trap of analysis paralysis!)
One of the reasons for using Commercial Finance Brokers to find you a small business lending is rising, is that they are experts in the packaging of your request and finding a lender who is interested in your type of business.
They save you time and hassle to draw all the above information, thus leaving you to agree with your business.
Using a commercial finance specialist source and organize your loans to small businesses will give you access to a wider range of funding sources that a bank can offer.
Business owners in the USA and Canada use Commercial Finance Brokers to their source of loans more than other territories.
Although not as well known in other countries (the United Kingdom for example, 70% of business owners first to their bank - M & A March 2003), they are if you look for them, and using one will be a great help to increase your chances of getting a loan, and indeed any other form of financing for small businesses.
You May also consider a private loan of family members, or soliciting funds from an angel investors (which is generally more interested in equity participation). Although rarely used, these sources are untapped at least worth trying!
9 things you must do to maximize your chances of getting a loan to small businesses
To obtain the approval of your loan application, you must be able to meet the lending criteria established. Some organizations are more cautious than others and therefore have more stringent criteria. To increase your chances of a successful application for funding, you must submit the following information.
1. The reason for this loan. The lender will be looking for something that falls within the normal range and expertise of your business. The May cover a number of questions, then you will need to cover everyone.
2. The amount required, and repayment of loans to small businesses that you want. (eg $ 10,000 5-year term, payable quarterly).
3. Details of how you repay the amount borrowed. For example, "The increase in profits of reducing operating costs of the Whizzbang Go4It underway and cash flow.
4. Details of security, you'll be able to offer the lender. N'aura other effect than to reassure the lender. If you're not ready to implement some aspects of security, so why should they?
5. You must include your business plan that will be used to answer key questions relating to the management capabilities, information on the market in which you operate, and the type of business you are etc.
6. 3-year financial statements. You will need to submit financial information quality of your small business book-keeping software, preferably signed by your accountant or tax adviser.
7. Last series of accounts. Again produced from your accounting software.
8. Accounts receivable (expense) and debt (creditors) ageing reports.
9. The directors of financial statements. -- In particular necessary if some form of security is necessary.
If you are a new company, emphasis will be on your business plan, and security (also called collateral), you or your company can provide against the loan.
If you're relying on your accountant to provide you with the information listed above, I recommend you make a small investment in small enterprises book-keeping software such as QuickBooks. The accounting software will prepare the necessary reports of your data entries, and you can also reduce the amount of time, the accountant must prepare your returns, which should reduce their expenses, more than pay for investment.
You should take the time to practice presenting your business proposal ready to iron out any problems. Practice on your colleagues and family (you never know, they could be so impressed, they will invest or lend).
It will also help if you play the role of lender and find with the greatest number of objections to accept the agreement as possible. The more time you take the better your chances of being. (But remember not to fall into the trap of analysis paralysis!)
One of the reasons for using Commercial Finance Brokers to find you a small business lending is rising, is that they are experts in the packaging of your request and finding a lender who is interested in your type of business.
They save you time and hassle to draw all the above information, thus leaving you to agree with your business.
