Everything you need to have before you go to the bank for a loan
Unless the funding for your business is coming from your own pocket, getting a loan from a bank is something that most businesses will have to go through.This is not an easy process and it should not be taken lightly.Banks will not just give loans to just anyone who asks for a loan.The banks are taking a huge risk when they give up money to fund a business.There are several things that you as a potential business owner will need to bring to the bank when you apply for your business loan.Some of these things include:
A detailed business plan
You as the potential business owner must present your business plan.You business plan must be detailed and to the point.You are selling this plan to the banker; you are trying to get the banker to believe that you will have a successful business.The banker wants to know that if he/she gives you money to finance your new business that they will make their money back.When you go to present your plan you must present the best o your self as well.A person's image will make a great impact on the decision of giving you the loan.Make sure that you know the answers to those important questions, like: "what are you using the money for?"If you are confident in your business the banker will be confident in you.
These records will be personal record and records of previous businesses if you have had any.This area will also include how you plan to make money and repay the bank for your loan.Your personal information will include your previous and current debts, and personal assets.If you have had any previous businesses you will need to give the banker tax record for those businesses.Then you will need to give you banker you credit reports.The credit report will tell your banker how your credit is and if you are good at paying your bills on time.
This is the part where you will tell the banker what you have that you can put up against the loan.This means if you have anything of great value and you can't repay your loan the bank will take that thing of value as collateral.Let's say that you took out a loan and the only thing you had of value was your house, you would give your house to the bank to qualify for the loan, and if you could not pay the loan back then the bank keeps your house.The banker will also want to know how much of your own money you are putting into your business.I you are taking a risk with your own money it will be easier for the bank to take risks with their money.
You will need to present your banker with a plan to repay them.A loan is money that is to be paid back.If you do not have a detailed repayment plan then the bank will be less willing to lend their money to you.
All of these things will be very important to have ready when you are applying for a business loan.Remember to be confident in yourself and in your business, banks smile and confidence.