Whether you’re starting a new business or growing an existing one, these four things will improve your chances at securing a small business loan.
For many small businesses, there comes a time when an injection of cash is needed. It might be to get a completely new idea off the ground, to extend into new areas or even to help smooth out your cash flow. Whatever the reason, securing a small business loan can help you reach your goals faster. But before you apply for business finance, be sure to have these four things in place.
A strong plan
Taking extra time to prepare your application can increase your chances of success. As well as a detailed business plan and a projection of your cash flow, you’ll need to put together a business case for the loan, which includes showing how the money will be spent. If the funds are to grow or extend an existing business, you’ll need to present your current financial records, too.
An understanding of the options
Business finance covers a whole gamut of options, from overdrafts to lines of credit, unsecured loans and even loans that are secured using your own residential property. It’s important to understand all the options that are available to you, so you can choose the right one for both your current and future circumstances. Making the right choice can potentially also help save you money at tax time.
Enough to cover costs
Every loan comes with its own set of costs, including both upfront and ongoing fees. Some lenders may allow you to roll them into the loan itself, but even if this is the case, you should have a clear understanding of the fees and charges that you’ll be expected to pay over the life of the loan and be able to make repayments until it’s paid out.
A trusted partner
As you might have guessed by now, finding the right business loan and the best rate for your situation can be a time-consuming process. Fortunately, you don’t have it to do it alone. No matter what stage your business is at, we can help you navigate the right path, negotiate the best deal, and give advice you can trust along the way.