The pressures and challenges facing an entrepreneur in this day and age are great. Opportunities arise, and must be confronted. One of the challenges is acquiring the capital necessary to make your business goals reality. You may be looking to purchase property, build a warehouse, buy out a partner, purchase equipment, etc. There are many ways to make a business grow. A business plan is the seed, money is the fertilizer, and your ingenuity and determination will water the business. From a seed to a great oak your business can be firmly established with the right financing. So be prepared to put your best foot forward to the business lender.
Bankers don't like surprises. They want to be absolutely sure that when they loan your business the money, that they will get every payment back in full. They want to deal with credible businesses that will come back again and again. And a business person, you need to be prepared to provide everything that is necessary to get that loan approved so you can move on with your business. There are number things that they will look at, including possibly your personal finances. All you want is a loan, not a hassle.
In the decision-making process, lenders like to look at what is coming in and going out financially. They check out things like annual sales, recurring revenues, profit margins, debts, collateral, and everything else that is on your books.
New business startups have a tougher row to hoe. The fact is that you must have a solid business plan, and good personal credit history. Otherwise you have no chance, unless you get to the Mafia, and then you really have no chance!! All kidding aside, be sure that your business plan is done to perfection. When projecting future sales, be realistic. Banks know when you're blowing smoke. If personal credit is an issue, consider bringing on a partner into your business. There are ways to get around things.
Business lenders want to know everything about your personal financial history in the business loan process if you add a business startup. They want to be sure that you're not going take the money and waste it on personal debt. They'll take a look at things like your credit history, your FICO score, tax records, collateral, and any liquid assets.
It is all for one reason and one reason alone. It is to find out how good you are at taking care of money. If you can't take care of your personal finances, then of course you will have a hard time taking care of the money that is given to you by the bank. Don't sweat it just understand that a banker wants to make his money.
In the business loan business, and there is a saying, "Never burn bridges." If it doesn't work out this time, work on what he did wrong the first time and come back with a more positive attitude and be prepared to get the money that you ask for. Preparation will make the difference and do not be afraid to approach more than one lender. Preparation and determination will make you successful.
Bankers don't like surprises. They want to be absolutely sure that when they loan your business the money, that they will get every payment back in full. They want to deal with credible businesses that will come back again and again. And a business person, you need to be prepared to provide everything that is necessary to get that loan approved so you can move on with your business. There are number things that they will look at, including possibly your personal finances. All you want is a loan, not a hassle.
In the decision-making process, lenders like to look at what is coming in and going out financially. They check out things like annual sales, recurring revenues, profit margins, debts, collateral, and everything else that is on your books.
New business startups have a tougher row to hoe. The fact is that you must have a solid business plan, and good personal credit history. Otherwise you have no chance, unless you get to the Mafia, and then you really have no chance!! All kidding aside, be sure that your business plan is done to perfection. When projecting future sales, be realistic. Banks know when you're blowing smoke. If personal credit is an issue, consider bringing on a partner into your business. There are ways to get around things.
Business lenders want to know everything about your personal financial history in the business loan process if you add a business startup. They want to be sure that you're not going take the money and waste it on personal debt. They'll take a look at things like your credit history, your FICO score, tax records, collateral, and any liquid assets.
It is all for one reason and one reason alone. It is to find out how good you are at taking care of money. If you can't take care of your personal finances, then of course you will have a hard time taking care of the money that is given to you by the bank. Don't sweat it just understand that a banker wants to make his money.
In the business loan business, and there is a saying, "Never burn bridges." If it doesn't work out this time, work on what he did wrong the first time and come back with a more positive attitude and be prepared to get the money that you ask for. Preparation will make the difference and do not be afraid to approach more than one lender. Preparation and determination will make you successful.
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