With the situation of our economy today, looking for a source of funding has become a headache. However, this should not be your reason of not getting a loan for your starting a business. The only thing that you need to do to get the ever challenging business loan is to make your self “loan-worthy”. Think of the process first before approaching the lenders. A single mistake will drive you away from your working capital.
The following are the questions to measure your being worthy of the loan. This will help you figuring out your stand in front of your lenders:
1. Do you really need the money? If yes, how quickly you must have it?
Do not pressure yourself with the need to get the money as soon as possible. Just stay cool and act as if you don’t urgently need the money. The less urgent your needs are, the less risky you appear to the lenders. Anticipate your needs rather than reacting to it.
2. Where are you going to use the money
Obviously, you will be using it for your business. However, you must be specific in front of your lender.
3. Can your business plan justify your need of money?
The first thing that the lenders would likely to look at is your business plan. Ensure that your business plan can justify the amount you are asking. You might be asking an amount that is greater than the targeted amount in your business plan.
The following are the questions to measure your being worthy of the loan. This will help you figuring out your stand in front of your lenders:
1. Do you really need the money? If yes, how quickly you must have it?
Do not pressure yourself with the need to get the money as soon as possible. Just stay cool and act as if you don’t urgently need the money. The less urgent your needs are, the less risky you appear to the lenders. Anticipate your needs rather than reacting to it.
2. Where are you going to use the money
Obviously, you will be using it for your business. However, you must be specific in front of your lender.
3. Can your business plan justify your need of money?
The first thing that the lenders would likely to look at is your business plan. Ensure that your business plan can justify the amount you are asking. You might be asking an amount that is greater than the targeted amount in your business plan.
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