Preparing Yourself for a Loan

Post Date: May 21, 2015 Categories: Author: innovations
Area Do I have what it takes? Yes/No
Capacity Do I have experience running a business?
Have I had this business for more than one year?
Do I know this industry well?
Do I have a good team working for me?
Is the business operating well?
Cash Flow Is my business profitable?
Do I have a bookkeeping system that will allow me to demonstrate this to the bank?
Can I produce financial statements from this data?
Is my cash flow sufficient to make the loan payments?
Capital Does my business have sufficient financial reserves?
Does my business have other people who could invest in it, should unexpected problems or hard times arise?
Collateral Do I have collateral (business and/or personal) which I can offer?
Is the property I own mine?
Is the property shared with my spouse or family?
Can I show the bank that I am honest, and keep my promises?
Character If I’ve had a loan or supplier credit before, did I always pay on time?
Have I always paid my personal bills on time? Can I prove this to the bank?
Do I have good references?
Conditions Is the industry that I am in a good one?
Do I have a unique product or service which makes me different from my competitors?
Is there growing demand for my products?
Does a loan make sense for my business?
Commitment Am I committed to working hard so that my business will succeed?
Do I really want it to grow?
Have I put my own money into the business?

 

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