Is has been said that the best way to get yourself prepared for a public speaking is to perform the dialogues in front of a mirror. This helps you analyze how the audience will react to your countenance or any twitch you may demonstrate. Such practice not only helps in building the confidence but also get you some time to lower the anxiety before the event.
The same rule applies to weigh up your own small business before making a loan application. You must evaluate your business position even before you think of getting a loan. It may require impolite integrity and openness but making the needed changes before making a loan application is always better than being a loan rejection.
Primarily, review your small business financial rudiments. Getting a business loan entails risk, and lenders want to have that risk minimized by reviewing business credit and collateral guarantee before investing. The following questions need to be considered before applying for a loan:
- Does your business pay bills on time?
- Do you at least try to get your credit fixed if there are issues involved?
- Do you know the loan specifics?
- Are there any hidden costs or application costs involved?
- How much cash your business really needs?
- Does your business have sufficient cash flow to repay the loan?
- Will the loan helps in business growth?
- Are you business and personal finances in order?
- Do you line up all the needed financial documents to submit to a lender?
- Is there any pre-payment penalty?
- Are there any restrictions on using the loan money?
- Do you have a solid business plan for growth and repayment?
It’s also essential to assess yourself as the business owner. Do you represent yourself as self-confident, practical and a born leader? Lastly, see about what sets your small business apart from other businesses. Evaluate your business from the lenders perspective. What’s your small business is accomplishing that your competitors aren’t? What you should do to differentiate your business even more from others?
After evaluating your small business, you are better off and prepared to ask for a business loan your business needs.