Need to win bank funding? Part 1
After the recent economic meltdown, getting a loan for your business has been more difficult than ever. The lending criteria for banks are now far stricter than before, and in order to achieve bank funding, you’re going to have to stick to some rules. Below you’ll find three top tips to remember when trying to get a business loan.
First off, don’t give up before you’ve tried to get your loan. Banks have reported that there is a lack of demand, which is thought to be because people are simply not even trying. It isn’t a matter of demand, however, as demand is still high – it’s just that people assume they won’t get the loan, and hence, don’t try.
The big banks may have strict rules, but ultimately, they are still lending. So don’t give up – keep trying!
Secondly, remember to have information to hand. Banks are now expecting their clients to be better prepared than a few years ago. You need to have all of your financial data to hand to be able to get a loan from banks. They expect you to know all of the financial details, and your plans regarding the money that you wish to borrow from them. A professional business plan, order books and management accounts must also be presented before you can be considered.
Finally, you should create a relationship. It’s important to remain open with the people you speak to at the bank, whether or not that is the bank manager. You need to seem trustworthy and you need to seem professional, so it’s important to create a relationship of sorts.