No matter how you apply for a loan, or who you use – never take lending lightly. It might get easier to take on debt but that doesn’t mean you should. Here’s some thoughts to remember when applying for a business loan.
Need some extra cash to take your business to the next level, but daunted by the loan process? You’re not alone. There’s a lot of paperwork and number-crunching involved.
Before you get started, remember that banks wants your application to succeed as the interest you pay is a vital revenue stream. So it’s up to you to make their job easy by turning up with a good business case.
Connect the dots for them. While banks are experts in money, they’re not necessarily knowledgeable about your area of business. Remember to present a clear story and demonstrate clearly how the loan will unlock business growth which will ultimately ensure the bank gets paid back.
When applying for a business loan, ensure you have:
- income statements and balance sheets for the past two years
- up-to-date financial statements
- business plans or project plans to show the direction your business is taking
- tax returns to verify your income statements
- bank accounts, also for verification
If you use cloud based accounting software, the platform will produce much of this information on demand, including:
- income and expense reports
- growth trends
- forecasts
Talk to us to get advice when applying for a business loan
If you’d like advice applying for a business loan let us know, we can help guide you on the right path and put you in a better business position.
