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| 10 tips to getting a start up loan |
By:
Ben Binding |
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One of the hardest parts of starting up your own business is trying to finding the finances. Unless you are lucky enough to already have the money yourself, it’s likely you will have to pay a visit to a financial lender at some point. With only half of those who do visit a lender coming away with any money it’s important you know a few tips that may just help you get the money you need.
1) First impressions are important. Wear your best suit and make sure your look smart and professional. Get up extra early and arrive 5 minuets before your appointment. Lenders aren’t in the habit of giving money away so turning up in a tee shirt and jeans is defiantly going to count against you. Appear smart and confidant, with out being bolshy.
2) Prepare before hand. Business plans and cash flow statements are a must to take with you so spend as much time as you can make sure they are accurate. Many lenders have helpful instructions on how to make a business plan and cash flow statements so follow these guidelines as the lenders will be more impressed if they are laid out in the manner they have suggested.
3) Do the sums in advance. Most lenders like sums so make sure you know yours. Know how much you will require and how you are planning to pay it back. This also means knowing how many units you need to sell and how long it will be before you start to make a profit.
4) Start saving. Most banks will be looking to you to put up 30% to 40% of the money you need. If it’s a big enough loan some banks may require your house as security so make sure you are prepared to take such a risk. However there are a few financial lenders around who are prepared to put up to 100% of the new start up loan you need so it’s worth shopping round.
5) Find out the facts. Learn all there is to know about the sector you are entering and the products or service you will provide. Know who your competitors are, how much of the market they control and how much the sector is predicted to grow. The lenders will be impressed with the knowledge you have of your markets and that you know what you are doing.
6) Sell yourself. The lenders will not only be investing in your business but in you as well. After all you will be the one who is going to be paying back the money so they need to be confident that you are capable of running your business successfully. Think of the meeting like a job interview, take a CV with you and prepare to talk about yourself as well as your business.
7) Know your answers. Lenders will not hand there money over to anyone who asks, they want to be sure that you are going to pay the money back. Before they hand over anything they are going to have to go through your business and this will included asking some though questions. Have your answers ready so you can answer any fears they may have, but if you don’t know the question don’t just make it up.
8) Know what you want. There is a whole range of start up loans available, from loans that provide low payment in the first year, one that you can extend as your business grows or ones you only pay during certain months of the year. Make sure you know which one is best for when you.
9) Choose the right time. The best time to seek money for your business is before it has even started. Lenders prefer to be involved from the beginning to make sure your business gets of on the right footing. The worst thing you can do is start your business with nothing and then seek financial help when you are struggling.
10) Pick who is right for you. You need to choose which lender is right for you. Use the interviews to interviews them as well trying to sell them your business plan
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http://www.generalfinancecentre.com |
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