HOW TO APPLY FOR A BUSINESS LOAN.

 Raising capital is one of the most important and challenging part of starting a business.  Capital can come from personal savings or loan, most people resort to loan to finance their business. Loan is an agreement in which a lender gives money or property to a  borrower, and the  borrower agrees to return the property or repay  the money , usually along with interest, at some future point in time.There are  two kinds of  loan, flexible loans  are tailored to  your business needs and may allow variable interests and allows monthly or quaterly installments. Fixed loan have a predetermined rate of interest and a more rigid payment structure. Whether the loan is for starting a new  business or for an already existing   business ,  there are steps on  how to apply  for business loans .

Steps to a successful business loan application.
Getting your loan request approved depends on how well you present yourself, your business and your financial needs.
General information /  requirements;  You will need to gather as much information as possible about your business and all the documents attached to your  business. The documents will help persuade your lender that you are worth the risk. You will need to have a business plan.  A business plan will show your  lender how and what you want the loan for. You will also need cash flow projections . The lender needs to know if  have a good flow of cash and able to pay back the loan.

A statement of your personal financial status;  A list of your  personal financial assets and debts will give the lender a clearer picture of your financial involvements.

Past business tax returns; This document is not required if you are starting a new business but if the business is already established and you have past tax returns on them. It's best to take it along with you to your lenders. It gives your lenders an insight into the financial aspect of your business.

Credit rating report; Whether you include this document or not, your lenders can easily check this out on their own. Also show in details any market research carried out. Market research information will define your company's products as well as your markets and identify your competition and explain how your business competes in the market place.

Review of your loan request; The lender is concerned about their repayment. having seen your business plan, tax returns and all. Your bank be it local banks, high street banks, building societies or specialist lenders,    will have some important questions to ask you before reviewing your application.
Firstly, How much are you personally investing in your business? Willing to put a huge ammount of your money into your business shows the lender that you are committed to the business.
Secondly , What collateral have you got?  What assets are you willing to stack, to secure your loan?
Thirdly, over what lenght of time do you intend to repay the loan? Are you going for a long or short term loan?




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