Elements of a Successful Small Business Loan Application
I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?
If you want to succeed in getting a loan, you have to be prepared and organized. You must know exactly how much money you’ll need, why you need it and how you’ll pay it back. You’ve also got to be able to convince your lender that you’re a good credit risk.
Getting your loan request approved depends on how well you present yourself, your business and your financial needs. Lenders want to make loans, but they’re only going to make loans they know will be repaid.
The best way to maximize your chances of getting a loan is to prepare a written proposal. A well-written loan proposal should include a number of things:
General Information
- Business name, names of principals, Social Security number for each principal and the business address.
- Purpose of the loan: exactly what the loan will be used for and why it is needed.
- Amount required: the exact amount you need to achieve your purpose.
- Business description: history and nature of the business, its age, number of employees and current business assets.
- Ownership structure: details on your company’s legal structure.
- Management profile: a short statement on each principal in your business, including background, education, experience, skills, and accomplishments.
Review of Your Loan Request
The lender is primarily concerned about repayment. To help determine your ability to repay a loan, many loan officers will order a copy of your business credit report from a credit-reporting agency such as Dun & Bradstreet. Therefore, you should work with these agencies to help them present an accurate picture of your business.
I’d be really interested to know your opinion. Check out the full article HERE and then I’d be happy to discuss with you by phone on 0401 714 406 or email at [email protected].
Thanks,
Darren