You are in a business or you have just planned to start a new one, with the capital you have. You prepare a comprehensive business plan and then you find that you need more finance to give a real ‘kick-start to your proposed idea. In case of being a businessman, you may plan for an expansion and you need finance to do so. What is the answer to this dire need of finance? The answer is of course a Business Loan . Next important step is to decide the source and terms for your loan.
Where to get it? The very first and the most important factor is to come to a final conclusion that do you really want a Loan and on what terms? Next consider a viable option, like asking a family member or a close friend to become a partner in the business and in return provide you the required loan, an option of which most businessmen are reluctant to adopt , as the Old saying goes a partner with family or friends is always a reason for breaks.What is the other option available? What if you go for a bank loan or a small business cash advance? Remember, bank loans are not easy to obtain as compared to the Small Business Loans . Sincere advice from experts are to first think and analyze your need for money, and only then take the decision, keeping in mind the different factors like interest rates and other requirements attached with the process of returning the borrowed finance.
After you finalize your option and are ready to apply for loan, do consider all available sources. Different companies provide loans on different terms. Some companies want you to return the money with ten percent of what borrowed, combined with additional five percent of future credit card sales. Another company may agree on just an additional eight percent more, but also ask you to pay over ten percent of your future income. Which works best for your business?
How to Get it – To get the required Business Loan for your business, you have to keep in consideration the following important factors:-
- Must be in position to meet the laid criteria of the leasing companies, importantly if you choose to ask loan from a company who show more concern of how you will pay back.
- Must show very genuine reasons for the Loan . Covering all aspects of its utilization.
- What amount you require for your plan, and how you intend to pay back. (E.g. Monthly, quarterly or yearly). Include details like you pay back from profits of reduced running costs/ on going business cash flow etc.
- Hand over your detailed Business plan for the information of lender; this will instill confidence regarding your business, management activities and information about the related market.
- Spell out details concerning provision of security of the repayment plan, to inculcate solid assurance in the Leander.
- Bank Account statements, of last at least three years duly verified by your banker, copies of tax returns and small business book keeping soft ware duly verified by your tax advisor must form part of your documents.
- Management Accounts sets from your accounts software.
- Before you present you plan to the Leander you must rehearse and practice it in front of your family members and friends so that you do not leave any ends lose or any possible queries/potentials questions unanswered.