5 Secrets to Getting Your Business Loan Approved

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Applying for and obtaining a business loan can feel like an overbearing process. Every year, thousands of people apply for loans for their business, be it a new business or a credited one, and do not get approved. Here are some facts and tips to make sure you can secure the funds you need.

1. Be able to articulate the future

Borrowers need to have an updated business plan. Show the lenders how the business is expected to grow in every aspect. Have a detailed report of how you believe you will profit from the loan. More and more lenders and starting to dig deeper into the plans of businesses. You should talk about all aspects of your business from employees, to management, to cash flow. Lenders will feel much more confident in loaning their money if they feel good about your plans and know exactly what the money is going towards.

2. Know Your Business History

When it comes to getting a business loan, your past history definitely becomes a major supporting factor in the decision of whether you are acceptable for a business loan. Lenders will review past business earnings as well as business history to help decide if your request warrants an approval. New businesses can still get a loan without any history by having a well-organized and situated business plan.

3. Be smart in other financial aspects of your life

When applying for a business loan, lenders will examine all aspects of your financial life including your personal credit. Personal credit can play a huge role in deciding if you are granted approval for your loan request. To the lenders, how you manage your personal expenses are most likely how you are going to handle your business expenses.

4. Present yourself well

Bankers do not want to give their money out to people they do not believe can pay it back. First impression makes a huge difference when meeting with a loan advisory board. You should come into the meeting with a detailed business plan extremely confident, without appearing needy or helpless. Dress professional, be clean-shaven, shake hands, look the lenders in the eye and be stern. If you present yourself well and provide a great business plan, it gives the lenders confidence in you, they will feel better about lending their money to you.

5. Build a board of advisers

Building a board of advisers will put you over the top in your loan seeking process. If possible, put together your team of accountants, management, legal experts, marketing advisors etc. Some small businesses simply cannot compile advisers, however. Contracting your business with an agency, such as the CPA who understands the world of business and can work on tax returns, looks just as good in the eyes of the lenders. This compiled with the rest of the steps stated above will show lenders how organized and thought out your business plan is. The more detailed your overall plans are, the better bankers will feel about lending you money.

By following these 5 simple tips, you’ll give yourself the best chance of getting the business loan you need.

Author Bio: – Jason Bengert is a professional blogger and works at Park Place Equity. He is a fun loving person and his areas of interest are finance and technology. You can connect with him at Google+.