There is a plethora of information available on how to get a business loan. Advice abounds around every corner. Be professional, have a business plan, show your passion, be willing to invest, and get your credit in order are all common and good pieces of advice.
Common sense tells us that not doing these things would be a great way not to get a loan, but what things specifically can be deal breakers all on their own, outside of financial issues?
Don’t Wear Jeans and Flip Flops
Looking professional is highly important if you are meeting with a bank lender. Of course, you could look the part completely and not get a dime if you can’t show you could pay it back. However, regardless of your financial situation, if you do not look the part you may be in for a rude awakening. It goes back to the idea of first impressions. Look the part so that you are taken seriously.
Don’t Neglect to Have a Business Plan
Your business plan is a lender’s first impression of what you want to do, and what they will potentially be lending money to help start. If you just walk in and tell them you want to open a custom car painting business, you may or may not be successful. If you walk in with a complete plan, market research, and projected financial statements, your chances are a lot better.
Don’t Assume Passion Is Enough
Too often would be entrepreneurs go to get a loan and think their excitement and passion will overshadow the fact that they have no experience, no money, and no credit. It just isn’t. Lacking enthusiasm can have the same effect.
Don’t Assume You Don’t Have to Put in Anything
You will have to show you are willing to make an investment, if you want someone else to do so. It may be that you have to take a loan against a luxury assets, but it is important to show you can come up with a percentage of the money needed, or that you have a partner with some cash. Do not go in assuming you can start with nothing and get something. It isn’t impossible, but it isn’t common enough to assume you can do it.
Seemingly small things can make a big difference to lenders. When you have all your ducks in a row and are ready to start looking for business loans, Biz2Credit can help. Visit Biz2credit to find out more.