9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example, "From the increase in profits of reduced running costs of the Whizzbang Go4It"

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you're not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. ? Particularly required 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.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don't fall into the analysis paralysis trap!)

Good luck!

About The Author

This article was written by Neil Best, an accountant with over 15 years experience in business finance. The article and other useful business finance information including sample business plans Sourcing and applying for small business grants and how to approach potential investors can be found at Small Business Finance Tips

---

Franchisor; Ongoing Support and Ideas

Ongoing support for a franchise system is omnipotent. A major... Read More

Are You Making the Most of Your Intern?

KEEPING INTEREST HIGH: Supervision is key to the success of... Read More

Outsourcing and Virtual Assistants: Small Business Saviors

Work smarter, not harderWhat is one of the best ways... Read More

Franchise Company Operations Manual Sample Outline

Many companies wish to expand and a few wish to... Read More

Small Businesses You Can Start in Automotive

There are many choices when thinking about a small business... Read More

How the Humble Ice Cube Made Business History

Gather round while I tell you the story of Kennebec... Read More

Have You Thanked Your Competitors Today?

Competition in the business world is often viewed as a... Read More

How to Wash Mobile Homes as a Business

Washing manufactured homes, mobile homes, can be a lucrative and... Read More

Bringing Home the Bacon

In general, all of us know how to accomplish the... Read More

Private Franchising is not Real a Real Franchise

One major issue not being addressed right now in the... Read More

Small Business 101: Deadly Ignorance

American small business is again in transition. Many employees, now... Read More

Finding the Right People for your Business

Where do you find the right people for a business... Read More

Boat Cleaning Business Case Study: Entrepreneurship 101

How do marine type businesses start? Have you ever thought... Read More

Internships: Good for Everyone

Many job applicants want a job but often do not... Read More

More Rules for Franchising?

The FTC- Mighty Federal Trade Commission has unilaterally decided to... Read More

How Is the LEGAL SYSTEM Dishing Out JUSTICE in Your Town?

Thankfully, most of us will never find out. That is... Read More

How to Start a Paper Shredding Business

Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More

Is Brick and Mortar A Passing Fad?

Q: Is the online world the best place to sell... Read More

Franchise Buyers from Hell

I ran a franchise company for many years, a car... Read More

Build Your Small Business by Building Relationships

-- The One Pager Shortcut Series --People do business with... Read More

Looking for a Business to Run in the New Revitalized Downtown Area?

Looking for a place to add a Quick Lube away... Read More

Nevada Incorporation: The Advantages of Incorporating in Nevada

Incorporation in Nevada has become an attractive option for savvy... Read More

Small Business Success Tip: Learn Something New Everyday

Your grandfather probably told you to "learn something new everyday".... Read More

Choose Your Own Guru

What is a guru?A guru is a teacher. A mentor.... Read More

Pressure Washer Concrete Cleaning Equipment

Cleaning concrete is tough and there is an easy way... Read More

25 Valuable Phone Numbers For Small Businesses Success

Starting and growing a small business can be a daunting... Read More

Successful Small Businesses Use PR

It's obvious when a small business has accepted the fact... Read More

Marketing Your Small Business - The Top 10 Brilliant Ideas

A Brilliant Marketing Idea... sounds great but what is it?... Read More

Small Business Newsletter Dilemma: Which Day Do I Send?

If you're just ramping up your small business email newsletter,... Read More

Uncover Free Veins Of Gold By Prospecting Online Guru Newsletters (Part 1 of 2)

Incredible as it sounds, you have a goldmine of free... Read More

Due Dilegence 101 Or What You Do Not Know Can Kill You! - Part 1

Introduction: This article is written as a general discussion on... Read More

Do You Want Your Own Fully Programmable ERP? - Part 3

Continuing from the second article:6. About the aground mathematical model,... Read More

Mobile Car Wash Market Opportunities in California

The current lack of industry leaders represents an exceptional opportunity... Read More