Need to win bank funding? Part 2
It’s necessary to be more professional and provide more information than ever to the banks if you have the intention of getting a business loan. After the economic downturn, the banks have simply stopped lending to a lot of people, and now require a lot more proof of financial stability in order to lend. Below are a few really important things to remember when trying to get a business loan.
Firstly, you need to remember to shop around. This is important. Most banks will even tell you the same, which may seem a little strange. If you feel that a bank is not offering you a good deal, then it’s important to take a look round other banks to see what they can offer. Furthermore, shopping around will increase your chances of getting a loan, as whilst some may reject you, others may not.
You also need to be open. The more you share about your business and finances, both good and bad, the more likely it is they will trust you and be willing to help. You also need to be open about what you’re going to do with the funds they will provide you with. Banks need to know what your plans are, which will also be outlined in your business plan, and need to feel comfortable in providing you with the loan. By providing them with all the information they need, they will be able to give you an amount that they see fit. If they think the loan doesn’t need to be as big, then they will offer you the bare minimum.
Finally, you could also consider different forms of finance to support your business. Trade finance is just another fantastic option, particularly for firms that work a lot with exports and invoice finance.
Furthermore, you should consider raising your equity finance. This is a massive way of helping you achieve your funds. Good luck!