One of the greatest problems that entrepreneurs encounter is the lack of funding. While most would use their savings or sell some assets to help finance their business, as a business grows, business expenses often outstrip the entrepreneur’s ability to independently finance them. It is often necessary for entrepreneurs to borrow from lenders such as banks to finance or expand their business.
However, given the economic downturn, most lenders are now more reluctant to lend, especially to startup businesses that don’t have prior credit records with them. Even if they do get them, startups are more often than not given loans at very high interest rates.
But according to Henry Go, a management and finance consultant with HiSYNG Business and Financial Consultancy, most entrepreneurs can avail of loans with good terms, provided they can impress their lenders.
Here are 10 tips Go says will help impress lending institutions.
1. Know your business
Thoroughly prepared documents as may be required by lender, for they will know that they are dealing with a serious borrower.
A consultant can usually provide the necessary inputs for putting up a credible business plan and come up with the number that best suits your requirements.
4. Do your research
If you decide to go through the borrowing process without a consultant, then scout around to find out which loan options and which banks best suit your needs.