Preparing a detailed business plan is an essential part of applying for a business loan. The lender will know that you are serious and can assess your application accurately, armed with all the right information.
Follow these Five Rules to give yourself the best opportunity to succeed.
- Know your numbers. In order to inspire confidence in you as a borrower, it’s important you are familiar with your key financial figures, even if you don’t prepare your own financial statements. These figures must include current income, net profit and expenditure. Include a profit and loss budget, and, if your business is new or you are starting a new business, prepare your personal credit history.
- Estimate how much funding you need. Are you looking for funds to help with cash flow and operations on a regular basis, with a larger overdraft limit for occasional use? Or do you need one-off funds to open a new branch, uprade or purchase additional equipment? Ensure that your business plan is updated to include competitor analysis, future growth, partners and strategies.
- Project your cash flow. Use this projection to prepare pro-forma statements, a guide to future earnings and data on past trends.
- Provide proof of loan security. A lender will evaluate your risk factors to determine if you and your business are a good investment. Consider the maximum payment you can afford before applying. Fast Debt Help can advise on offering collateral (assets such as property to secure your loan). We can also act as a third party to guarantee the loan on your behalf.
- Make comparisons. Ask Fast Debt Help to shop around on your behalf to establish the loan products on offer, loan fees and possible changes in interest rates, legislation or terms.