A Guide On How To Obtain A Business Loan
It is no secret that the economic recession in 2008 had a huge impact on all of our banks in terms of their lending criteria. As our economy recovers from this recession, young entrepreneurs will have to count on our banks and other loaning establishments to support their growing business. They will definitely need to loan money for their business to become successful. The dilemma that most entrepreneurs face is the fact that it is now very difficult to apply for a business loan, this is because of the great recession in 2008. Even though getting a business loan is not an easy task, in this article, allow me to provide you some helpful tips that may serve as your guide when you are applying for a business loan of your own.
1. Have a strong existing banking relationship
If you have a good banking relationship, the chances of you obtaining a business loan will significantly increase. It would be very beneficial for you if you apply for a bank that offers personal or business checking accounts. As we all know, banks will make money if they earn more in the interest they charge in their loans versus the payouts they give to their depositors. If by any chance you apply for a business loan with a bank where you have made multiple deposits, they can easily approve your business loan because of your good relationship with them. If other people like and trust you, they would love to do business with you.
2. Prepare a simple yet practical business loan proposal
You must keep in mind that these banks receive a lot of business loan requests everyday. A lot of bankers will not mention this to you but they would really love to receive and approve business loan proposals that are not too detailed, they prefer receiving practical ones. You must only include the important parts of your business along with your information in your proposal.
3. Give them a compelling presentation
Combine having a simple and practical proposal with a compelling presentation and your business loan is very likely to be approved. This is important in order for you to leave a good impact on the banker. Always remember that it is the duty of these bankers to review and analyze thousands of requests in a week, you must have an edge with the others. Make sure that you catch the attention and interest of your banker when giving your presentation.
Applying for a business loan is not as easy as it seems, however, if you remember and apply all of these helpful tips, you are guaranteed to increase your chances of obtaining a business loan.