Not one of those things in life which gets the blood rushing, the adrenaline pumping, nor is it one of those things that keeps you awake because you simply cannot wait the morning to get your application in…
So let’s try and make things a little more interesting..
Applying for business loans is all about getting your story straight, clarifying what you want, why you want it and why you are a safe bet for the money.
One of the biggest issues we see is with businesses that don’t get their story right.
What Do We Mean?
Take this as an example –
..In the future a paraplegic war veteran, is brought to another planet, This planet is inhabited by a humanoid race with their own language and culture. Those from Earth find themselves at odds with each other and the local culture..
Sound interesting? Probably not really, it sounds more like a very bad b-movie.
The synopsis is actually that from Avatar which grossed over $2.7bn US dollars in box office sales.
Would Avatar have secured business loans for their movie based on the above story? Probably not. However they got their story right for the money-men and the rest is history.
What it shows is that you need to get the right story for the right person, so when seeking business loans make sure you give the right information at the first time of asking.
What To Give
When applying for business loans then give consideration to the following –
- What do the company accounts say, not just the figures but what has driven those figures
- What is the trend within the company. Is performance static, are sales increasing/steady, are costs increasing/decreasing
- Is the business loan for something reasonable and beneficial to the business
Be honest with yourself. Would you lend your business your money based on the facts your are presenting?
Bear in mind that whilst most lenders will want your financial accounts early on, your accounts will generate questions rather than answers so make sure you have the information to support them.
If you have any questions about any part of business loans then give us a call and we will run through things with you. If you have any comments then add them above or contact us via the website.
By Lime Consultancy