Tip 1: Know your business inside out
A businessman must be ready to answer all the necessary questions while obtaining a business loan. To understand this from the point of view of a lender, it is taken as a red flag if a business owner is unable to answer simple questions or offer a basic level of information. It’s like a process of selling an individual a package holiday abroad without any flight details. There are certain business loan application tips that one must follow, to procure a business loan in Bangalore.
Likewise, one would not just be trying to sell us the product or service. Convincing a lender to invest in their business over a while is a harder task than an immediate purchase. One should feel comfortable sharing information relating to their business including past performance, present challenges, as well as plans. Be prepared, be engaging, and be yourself.
Tip 2: Keep the records up to date
When a lender assesses the business, one would expect to receive the latest records, including bank statements, statutory as well as management accounts, proof of revenues, contracts, etc. Henceforth, it’s crucial that these can be offered instantly and quickly.
The wisest advice is to make sure the finances are to keep all their records current and keep them readily available. In such a way, one doesn’t have to compile everything at that very end moment. Set strict deadlines on reporting, either weekly or monthly as well as stick to them – there’s nothing worse than trying to combine figures that aren’t fresh in the mind. If one can’t keep up with the reporting, our best advice would be to hire a professional accountant to check the business accounts as well as the credit report.
Tip 3: Have a plan and know the purpose
One of the most vital purposes we hear for a business loan is to bridge a cash flow gap. Therefore, as long as one knows why the current cash flow is short, we can assist you. It might be certain one would have to pay out for some extra stock to get them through an increased sales period or pay overheads while waiting for a third party to settle an invoice.
Furthermore, knowing and being able to present the details behind the purpose of the loan is vital. Plan how much an individual wants to borrow and what for, as having a clear plan will support the success in applying for a business loan.
Tip 4: Communicate honestly and openly
With our top tips above, the chances of success are vehemently improved. In addition, once they have submitted the application and are successful, treat ongoing communication with the Fleximize team as a top priority. We only say this because responding promptly gives us confidence in the business and shows us a better impression of what to expect when managing the repayments.
But more eminently, be honest as well as always assuming the person on the other end is trained to look for inconsistencies in the stories as well as numbers because that is true. No lender is considered likely to fund a business with questions floating around, so how one can handle the application process shows us a lot about them, making a good and decent impression.
Tip 5: Don’t over-commit oneself
Various businesses tend to over-commit themselves financially from the very beginning. In a certain way, causes problems later when trying to procure further credit. One chance of raising money isn’t particularly great when they’ve over-borrowed early on and can’t keep up with the payments or if they had given away all the security in their business.
