By Nigel Hilton
In a Utopian world, getting a bank loan would entail nothing more than walking into the local branch of your bank, high-fiving the manager, asking how his kids are, filling out a short form and then walking out with more cash than you went in there to ask for. Unfortunately, we don’t live in a Utopian world, not by any standard of imagination. No, we live in a world where getting a business loan is more challenging than learning how to walk a high wire tightrope in Danish clogs.
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We know this sucks somewhat, but it is what it is. Luckily for you, we have spoken to a few friendly bank managers and got their top tips on how you can give yourself the best chance possible of landing that business loan. From there, well, your idea can become the reality you always dreamed of.
But it all starts here, with these tips.
Get The Ball Rolling
It doesn’t matter that you are not fully prepared, or not ready to launch your business just yet. By the time your application has been through the approval process you could have a beard like Gandalf, so it is better to start right now. If you don’t – if you wait until you need the money – then you could find yourself in the most uncomfortable and uncompromising situation you’ve been in since that time you went to Berlin on a Stag Do.
Sort Your Credit Rating
Lenders are going to want to know about your personal credit rating whether you like it or not. That is just how they deem whether you are a risk or not. We know that isn’t the easiest pill to swallow dry, but swallow you must. The good news is, there are ways in which you can improve your credit score, it is just knowing what is going to have the most weight with your lender. To help you out a little, seventy-five percent of the score is made up of payment history, credit utilization and the age of your credit. That’s where you want to start.
It’s All In The Detail
A lender is going to want to know exactly how you are going to spend the money. That is a fact as cemented in truth as the one about Trump being a terrible President. It is not good enough to say you are going to maybe do something with metal. You need to tell them you are going to specialize in custom sheet metal fabrication primarily using stainless steel, aluminium, and copper. Vague and general responses are not going to tick any boxes. Instead, make sure you are giving specific details so that they can determine just how feasible your application is and how seriously you are taking your business.
Take Control Of The Situation
Organization is going to be your best friend in this process and play a key role in whether you get the money or have to resort to a Plan B. That is why you need to over-prepare for any meetings you have with your potential lender. Read every piece of information you can, speak to financial advisors and get their take on the figures, and bring any supporting evidence you can with you. That way you wow whoever is sitting on the other side of the table, and that is exactly what you need to do.