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10 Ways to Get Your Business Bank Loan Approved
If you have no business credit history, applying for a bank loan will prove to be more difficult. Of course, bankers are looking for solid assurance that the loan would be repaid on time. If you are a new business or have yet to establish business credit, you need to know the right strategies to get approved for a bank loan.
1.Look for the right lender. Some banks have special loan programs for small businesses while other banks strictly offer financing only for established businesses. Submitting your loan application to the wrong lender can only lead to rejection.
2.Apply from your personal bank. Consider applying for a business loan from the bank where you already have an existing relationship or where you have an active savings account. If you have been a long time customer, a banker will have more confidence in your ability to handle a business loan.
3.Prepare financial sheets. See to it that you are ready to submit copies of your business’s financial statements for the last three years along with financial projections. As a start-up business owner, you will also be required to submit your personal finance sheets and personal income tax returns.
4.Borrow only what you need. Propose a loan amount that will be sufficient for your needs. It might be tempting to borrow a higher loan amount but when your lender reviews your business plan and finds out that your expenses do not match with your proposal, a lender may doubt your sincerity and your application may get rejected.
5.Prepare for the interview. When you sit down with your banker for the actual interview, it’s important to show that you are certain about your plans for your business. Anticipate possible questions that your banker may ask. Do your homework and prepare to make sure that can answer the questions with confidence.
6.Dress up the part. If you’re going to meet with a potential lender, you must present yourself in a professional manner. See to it that your clothes are clean and well-pressed. Showing up in jeans and shirt may send out a negative impression to a lender. You don’t necessarily have to wear a coat and tie as long as you are in business attire.
7.Don’t exaggerate facts. Don’t try to exaggerate figures just to make your application look good. Avoid giving statements that are not based on facts. When asked to give projections, be realistic.
8.Don’t give up. In case a lender rejects your application, don’t give up right away. Examine the steps you’ve taken as well as the documents you have submitted. There is always a room for improvement to enhance your chances of getting approved by your lender.
Irish Taylor is a bussiness loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.
Copyright 2011.
Related Article: Borrowing Money To Build Your Business
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