Courtesy of YouTube.
This is a great video on how to get a business loan. Explained by a local lender and includes some tips on getting approved, specifically if you have bad credit.
- Remember the Five C’s of Credit
- Character – Have you paid your bills on time? Are you experienced in your line of business?
- Collateral – Additional guarantees or security offered to the lender in case you can’t repay the loan.
- Capital – Money personally invested in the business. Shows your risk in the business.
- Conditions – intended purpose of the loan and local conditions of market.
- Capacity – most critical aspect. Cash flow of the business and probability of repayment.
- Banks need to make loans in order to stay in business. So don’t be afraid to ask for one.
- Look for banks that are active in similar industries as yours and lend to local businesses.
- Be prepared when meeting your bank.
- Have tax returns ready, personal financial statement and business plan
- Know how much money your business needs, length of time money is needed for, what the money will be used for, when and how you will repay it, what you will do if you don’t get the loan.
- Ask for referral from successful entrepreneurs. Best way to meet a Banker is through a referral.
Need a referral to a local Bank Vice President in your area?
Business Credit Workshop not only prepares your business for a business loan, but also introduces you to active lenders in your area. Call (888) 218-6354 for a consultation on how we can help you get a business loan today!