ALL >> Business >> View Article
Things To Consider When Taking Out Business Loans
Starting a business is an exciting experience except for the time, when you get to the stage of acquiring business loans. It's another thing to be all excited about your business idea, but to transmit this excitement into someone else and making the investor believe in your idea as much as you do is something else. And when the person in question is a banker or venture capitalist, the job becomes even harder. Acquiring a business loan for an established business is relatively easy and it should not be a problem if you are maintaining a good credit history. However, the success rate is significantly low when we talk of business startups going out in search of loans. Ironically, they are the one who need it the most.
Critically review your idea:
Before going to the bank or any other traditional lender, scrutinize your business idea from all perspectives. Understandably, you'll be a little biased towards your own idea, for you that's nothing but perfect, but try to think from a third party viewpoint. Are their any statistics, which you can turn up to support your idea? Does your idea complement some ongoing market ...
... trends? Are you going to offer some product or service that's already in demand? Better discuss your idea with some of your friends or relatives to get some neutral comments or reaction. More often than not, you'd get some off-putting reminders, try and come up with the counter arguments or plans.
Make a Business Plan to present your case:
You need to present a comprehensive but concise, and fully documented business plan. It will help the banker to understand the prospects of a business, a well thought out plan also represent you as a person who is capable of running a business. The business plan should clearly explain the growth potentials with the help of facts and figures. If you are seeking loan for a business startup, your personal credit history should be clean, because more often than not you'll get a loan on the basis of your personal net worth and guarantee. You can strengthen your case by coming up with estimated Balance sheet or cash flow.
Another thing that will strongly go in your favor is your experience (if you have any) of working at some high-level position at a company that relates to the business you are willing to do. It amplifies that you know the trade secrets and the market for this business.
William King is the director of Computers Wholesale Suppliers: http://www.wholesalepages.co.uk/ukwholesalers/Computers-9-0.html , USA Wholesale Suppliers, Distributors, Dropshippers & Manufacturers: http://www.dailytrader.com/usa/ and UAE Dubai Property & Dubai Real Estate Properties Portal: http://www.bayut.com/ . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.
Loans, business, startups, loan, lenders, banks
Add Comment
Business Articles
1. Finding A Trusted Sustainability Consultant In Abu DhabiAuthor: Agile Advisors
2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors
3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review
4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals
5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo
6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan
7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun
8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie
9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort
10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd
11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo
12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals
13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene
14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog
15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller