Information you Need to Provide in Getting Business Financing

Most aspiring entrepreneurs failed to get the approval of business loan not because they don’t have the capabilities to pay the loan but because they don’t have enough information.

If you are planning to get a business loan, you must know first the information you must provide. The following are the documents that you must prepare before facing your lender:

1. Cashflow

It would be better if you can provide data that shows you understand and can manage your working capital. Understand the movement of your cash and you may found out that you don’t need to borrow that much to sustain your business operation.

2. Outlook

Predict your financing status and present an amount required, payback period, risk and return to the bank. As much as possible, figures should ideally show the relationship between profits, your balance sheet and cash flows. Your forecasts should always be based upon the most up to date actual data.

3. Markets

You must explain your market. You need to show to the bank that you have a clear action plan.

Aside from the above mentioned information, there’s a lot more documents that you need to present to defend your credibility. My point is, do not face your lenders unprepared. Study and prepare all the things that you think your lender must need to know.

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