Are you finding it difficult applying for a business loan? It may seem challenging, but it’s actually easy with little professional advice. I will be sharing with you steps on how to apply for a business loan.
Incorporate Your Business.
To access a business loan, it’s advisable to have your business registered with the Corporate Affairs Commission(CAC). This gives your business a legal status. No investor will give you money when you are not legally structured. As a corporate, you can be sued and sue. It also helps to protect you as an individual. This is one thing banks will look for when they are considering putting their money in your business.
Know How Much You Need.
You must have an exact knowledge of how much you need. Don’t go seeking for capital investment without knowing how much you need. It shows you are a novice and a bad grown to invest in.
Have A Business Plan.
This is crucial. It gives you business process and credence. A well designed business plan will explain the profitability of your business, which attracts investors. This is one document all investors will seek from you before investing in your business. If you don’t know how to write a befitting business plan, seek professional assistant.
Open A Business Account.
Open a current account in the name of your business. This is very important. The banks are not dealing with you as an individual, but your legal business.
Approach Financial Institutions, Friends & Families and Investors.
You must go looking for them. Go to the commercial banks around you. Visit the Microfinance bank as well. Talk to friends & families, someone among them may have what you are looking for. Talk to people. Use social platforms that connects you to investors, for example, www.pitchoffice.com. Use all mediums available to you. Lots of banks are now helping small business owners.
Ask Intelligent Questions On Grey Areas.
Be smart and professional. Don’t be blind to very important clauses. I remember a lady i was selling Credit card to when i was still in the banking sector. She requested to go read-up on the document. It’s okay to seek professional advice. Never be in a hurry to sign, just because you need money. Ask about the loan’ duration, the possibility of a moratorium, the interest rate and more.
Seek Professional Advise.
Whatever you find difficult to understand, talk it over with a business consultant or an account. It’s paramount.
Learn To Cope With No’s.
You will hear a lot of no’s. Get ready for this. Don’t let a no stop you. Move on to the next institution or person.
Compare The Offers & Chose The Best.
It’s okay to look out for the best offer. Compare the interest rates, the durability of the loan, moratorium possibility and other vital clauses. Chose the offer that is more friendly to your business.
Pay Up On Time.
This gives you better chances of enjoying future financial support. Don’t default. It’s bad for your business. Create a good credit worthiness