A lot of businesses, no matter how big or small, will probably require some form of loan sooner or later. Whether it’s the initial start up costs of the business that need to be funded, the expansion of an existing business or for the simple upkeep of your business, sometimes a loan is vital.
If you want to apply to your bank for a loan then you will have to make sure that you have all the information the bank needs in order to see if you are eligible. They will want to know everything about you and your business, why you want the money, for how long and how you intend on paying it back.
In order to show all of this you need to be prepared. One of the first key things you will need to show them is a business plan. This must show what you intend on doing with the business if given the money, how you expect your business to progress and how your going to make it happen. If you are a start up business then the bank will want to know whether the business idea is actually going to work and if it’s worth lending you money. Another thing you should have is financial projections; that way the bank can asses your financial situation in order to decide whether you will be able to pay the loan back and if you are a risk or not. They may also want to see details of your personal finance rather than just the businesses in order to have a clearer picture.
If you have an established business then the bank may want to see previous accounts, again to asses your previous finances and to see how the business has faired in the past. It could also be worth having a credit rating report to hand, although banks will be able to check this anyway, it can’t hurt to have.
You should have a good argument to put forward on why you deserve the money and what you are going to do with it to make the business grow. You must also be prepared to talk about yourself and how your expertise, background and aspirations are going to help the business grow. You need to assure them that the money is in safe hands and will be put to good use. Your chances of getting a business loan from the bank will be greater if you can provide all the above and will be willing to answer all their questions.
If you have any further questions and would like some advice on getting a business loan then please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.