How to Prepare Properly For a Business Loan and Get Approved

June 20, 2009 · Posted in Advice, Business Planning, Fashion Business Start · Comments Off 

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Creative Commons License photo credit: Alexander Somma

You have to convince the lender that you are a good deal, since the lender is the one that is at the highest risk, they are not ready to throw their money away, therefore it is your duty to convince them to give to a try, anything short of this, you would be denied the loan.

If you understand the process of loan application, it will be to your advantage as it will increase your chance of being approved for the loan and also getting the loan term that is best for your business. You must be sure of what you want to use the loan for before starting the application process

Purpose of loan: You have to clearly state what you want to do with the loan that you requested and it must be done by putting forward a loan proposal, as this will give the lender a clear vision of what you intend doing with the money if granted, anything short of this your chance of getting the loan will be reduced.

How much do you need: Make sure the amount of money that you require is stated, but remember the estimated loan you are requesting should not be too low or too high, as lender will not give you a loan if they think the amount of money you are asking for is too low and when you ask for what is unnecessarily high, since lenders are out to make profit, they have to be sure that they are also going get some nice returns from the money you are going to be given. Read more

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Business Fundraising – Network With Your Capital Providers Before You Need The Money

June 19, 2009 · Posted in Business Planning, International Market, Online Marketing · Comments Off 

Marion Cotillard, Elle March 2008
Creative Commons License photo credit: Tammy Manet

Often entrepreneurs will be in the process of building their businesses and suddenly be struck by a need for cash. The business wins a big contract or general growth has increased in speed. On the down side, the slower economy slows sales growth or customers slow down their payable cycle. Either way, this is not the time to go looking for capital.

If you ever believe you may need capital, the time to start the process is now, be it debt or equity. Take the time to get to know your banker. If you bank at a large bank, such as Bank of America, get to know the local branch manager. Find out how they process business loans. If there is a local loan officer, ask to meet with him or her. Find out what the lending standards are.

Large banks may allow the branch to approve loans up to a certain amount. Higher amounts may be kicked up to the regional or corporate offices. It would be a shame if you were denied a $60,000 loan by a corporate office, but you could have gotten a $50,000 loan approved by the local branch. Read more

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How Do I Obtain Capital To Invest In My Business Start Up

June 14, 2009 · Posted in Business Plan, Investors, Loan, Strategy · Comments Off 

You’ll almost certainly need to raise money to start up your company, unless you already have sufficient capital yourself. The typical costs of starting up are in obtaining premises, manufacturing your product if you have one, buying materials, stock or equipment, marketing and fees for external consultancy such as legal help, accountancy etc. Then when you’re off the ground, you’ll need working capital to keep you afloat in the gaps between paying your own invoices and receiving payment from customer invoices.

Again, your business plan is essential at this stage of setting up your business. In it you will already have scoped out what your money needs are and how you plan to raise the capital, and you’ll be using it to persuade potential investors and lenders of the benefits of funding your company. Your financial calculations in your business plan therefore need to be thorough and accurate and presented with confidence. Read more

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