How should you prepare yourself when making a business loan proposal? The more prepared you are, the more likely your business loan proposal will be approved.
Preparation is everything when it comes to applying for a business loan. It will not only speed up the review process, but it will also increase your chances of receiving money.
Bring the Proper Documentation
Before you even visit the lending institution, you must make sure that all of your business documentation is in order.
Bring a well thought-out business plan. Each lending institution will focus on different factors in an application. Therefore, be sure to include precise information regarding your your products or services, your customer base, and marketing strategies, as well as the future goals and profit projections you hope to achieve should you receive the loan.
Make sure to also bring documents, such as a balance sheet and income statements, that clearly describe your past and current cash flow.
Finally, take the time to research what information is required by the specific lender when making a business loan proposal. You can do this by phone, by visiting the institution itself, or by researching lender’s website.
What You Should Know About the Interview
When all of your documentation is in order, you will then be ready for the interview. Here again preparation can make a big difference. Phone ahead and arrange an appointment with a loan officer to ensure that he or she will be able to give enough time and attention to your proposal.
In this initial conversation, you should avoid going into detail regarding your business loan proposal. Give a brief description of your intentions and the time necessary for the meeting. Usually, an hour provides ample opportunity to make a loan request and answer any questions the loan officer may have regarding the application.
Be aware that there are optimum times to schedule such a meeting. On the first and fifteenth of every month, the financial traffic at a bank increases. This increased traffic may cause your meeting to be interrupted or cut short. Also try to avoid Mondays and Fridays for the same reason. The best time for an appointment is in the middle of the week during the bank’s morning hours, and the earlier the better.
There are several things to consider and prepare for when making your business loan proposal. Many small business owners have avoided this process by accessing funds using a business cash advance. They have found this method to be most successful as it is based solely on the purchase of future credit card transactions and therefore does not have interest charges or obligations of repayment.
Related: Small Business Loans