What is Needed to Get a Business Loan?
Getting failed at collecting financial support is one of the most common reason when young entrepreneurs leaves their dream of starting up their own company and making themselves their own boss, so what could be done by any small business owner for helping out him/her with this deadly crisis?
Oh you don’t have any idea, don’t worry I have some simple as well as effective points listed below to help you become aware with the questions like “what is needed to get a business loan” from any individual, big bank or finance company you can trust upon.
Showcase your Business Plan
No doubt your business had some potential that’s the reason any banker will give you a chance to showcase your business plan according to what you and your business management team hopes to book profit and repay the loan amount back to the lender with the interest charged.
Now when you knows that a strong business plan can solve your challenge then why don’t you follow the hard rock ways to make a convincing business plan to show the same in front of the banker, have a look at this to do list :-
- Make a digital business plan using your laptop
- Be descriptive in your plan
- Show the future potential of your business
- Use as much as statistics you can use
- Show the difference in current and future business profit in standard currency
- Carry a copy of your business plan and handover to your banker for further discussion if they think to hold a discussion with their senior managers
After getting a convincing business plan the lender will be interested in getting previous records from your previous lending bank or company if any.
Present a NOC from Previous Lender
So your business plan was eligible for getting loan on the same and now the banker is thinking about moving ahead by investigating your previous records if any, if it the first time your company seeking a business loan then no problem but it’s a duty to present previous lender’s NOC (No Objection Certificate) if you are seeking business loan other than first time.
Your previous fair records will help you in getting business loan on ease but it becomes mission impossible if you have not done any good business with your previous financial supporter by not paying them back their loan amount with the interest according to the deal and then they gives a loan score to help other companies in deciding to help you with the finance or not.
Note*- If you have clear records then contact your previous lender and they will feel happy in providing you a NOC.
Managing a startup business with the financial supporters becomes easy for the management team and hence don’t give up and cheat the lender because that will push you behind the limitations of any banking body where they will not able to give you the desired amount due to your previous records and hence always be an honest business owner with your investors and that includes your lender also.
After providing NOC you will need to cover your desired amount by giving them the proof of cash in hand or the property of the equal amount or more than that what verifies that you have something to pay the loan amount if your business goes at the wrong way and you becomes bankrupt.
Have Records of your Property and Cash in Hand
Okay the second step of getting a bank loan was providing NOC what convinces your lender to prove that you did a fair business with your previous lenders and hence they can believe on your business and your nature too that you will not cheat them and hence they will show their their interest in moving their last step towards issuing you a Cheque/Demand Draft of desired amount as loan and now at this stage they will ask for non other than your ability to pay back the loan amount assuming your business plan will fail and you will declare yourself as a bankrupt due to any accident or unexpected negative business condition.
So what is that is you can show as guarantee for getting a business loan :-
- Property papers
- Fixed deposits
And etc that says you are eligible in paying back the lending amount to the bank or finance company.