How to get a business loan

The business loan application process

The actual process of getting a business loan is a simple one in basic principle. You will need to apply for the business loan usually through a major lender and you will subsequently have your application accepted or refused. Then you can use the money as set out in your business plan and loan application, ensuring you make the necessary repayments as agreed. The actual process of how to get a business loan is a more complex routine in reality.

How to get a business loan - Preparation

The first, and possibly most important step is research and preparation. You must provide a full business plan, details of how much you want to borrow and when you intend to repay it. How to get a business loan is all about the preparation of this information and done properly it can greatly increase your chances of receiving the funds you need. Done incorrectly or omitted completely and you stand very little chance of being accepted for the loan.

How to get a business loan - Being realistic and sensible

Lenders do not offer a bottomless pit of money to new businesses and their acceptance policies are fairly stringent. It is vital that you are realistic in terms of the loan schedule and amount. Asking for too much money will instantly set off alarm bells, as will asking to repay it over too long or an unrealistically short period of time. Don't sell yourself short but do be realistic. Also be truthful because most business loan advisors are well experienced and can spot a mistake or false information from a mile off.

How to get a business loan - Forecasting and projecting

As well as providing a business plan and other supporting evidence you will need to provide a realistic assessment of your budget over the next twelve months. Obviously you can't guarantee an amount of customers but you can make a fairly accurate assessment of how well your company will be performing.

A business loan can be the difference between a successful start up company and a failed business idea. It provides a business with the financial means to make purchases, hire staff and pay for work that needs doing. Only by completing an application with a business loan lender and giving all of the required information do you stand a good chance of having your application accepted. Prepare, be realistic and provide all the information required.