Whether you are trying to get loans for women business owners, loans for minorities, or just a plain old vanilla business loan, you are likely stressed that something will go wrong. Sometimes things do go wrong and your loan ends up not being approved. This can happen sometimes even if the finances are all in order. Here are three common reasons this happens, and how to prevent these things from happening to you.
Lack of Preparation
It is painfully obvious when an aspiring business owner is unprepared to apply for a loan. There is so much more to it that filling out paperwork. From the time you approach a bank until the time the funds are in your account, you are being watched. Of course, the determining factor is whether or not the lender believes, and can see, that the company will be profitably enough to pay back the loan. A potential borrower must be prepared to talk about the business, the market, management, budget, and anything else the lender may ask about with knowledge and confidence. Do your homework.
Lack of Presentation
Part of being prepared is being proactive. Know what questions will be asked and the answers you will give. This typically takes the form of a professionally written business plan. It should lay out the business, the owner’s capability to start and manage it (based on education, experience, etc.), as well as pro forma financial statements, market research, and more.
Lack of Physical Presentation
If you do not look the part, it could make a difference. If the loan could go either way, a borrower that is put together and professional in appearance and behavior is going to have a much better chance. Wear a suit and use your manners. It sounds simple, but it could tip the scales just enough. It is certainly is never going to hurt.
Of course, before any of this can happen a lender must be found. Biz2Credit matches borrowers looking for startup loans, loans for women business owners, equipment loans and more with lenders in a network of over 1,300 that best fit their needs. Let Biz2Credit handle this first step, so you can focus on the next. To speak with a Biz2Credit loan specialist, call toll free 877-861-2210 or visit Biz2Credit today for more information.