Getting failed at collecting financial
support is one of the most common reason when young entrepreneurs leaves
their dream of starting up their own company and making themselves
their own boss, so what could be done by any small business owner for
helping out him/her with this deadly crisis ?
Oh you don’t have any idea, don’t worry I
have some simple as well as effective points listed below to help you
become aware with the questions like “what is needed to get a business loan” from any individual, big bank or finance company you can trust upon.
Showcase your Business Plan
No doubt your business had some
potential that’s the reason any banker will give you a chance to
showcase your business plan according to what you and your business
management team hopes to book profit and repay the loan amount back to
the lender with the interest charged.
Now when you knows that a strong
business plan can solve your challenge then why don’t you follow the
hard rock ways to make a convincing business plan to show the same in
front of the banker, have a look at this to do list :-
- Make a digital business plan using your laptop
- Be descriptive in your plan
- Show the future potential of your business
- Use as much as statistics you can use
- Show the difference in current and future business profit in standard currency
- Carry a copy of your business plan and handover to your banker for further discussion if they think to hold a discussion with their senior managers
After getting a convincing business plan
the lender will be interested in getting previous records from your
previous lending bank or company if any.
Present a NOC from Previous Lender
So your business plan was eligible for
getting loan on the same and now the banker is thinking about moving
ahead by investigating your previous records if any, if it the first
time your company seeking a business loan then no problem but it’s a
duty to present previous lender’s NOC (No Objection Certificate) if you
are seeking business loan other than first time.
Your previous fair records will help you
in getting business loan on ease but it becomes mission impossible if
you have not done any good business with your previous financial
supporter by not paying them back their loan amount with the interest
according to the deal and then they gives a loan score to help other
companies in deciding to help you with the finance or not.
Note*- If you have clear records then contact your previous lender and they will feel happy in providing you a NOC.
Managing a startup business
with the financial supporters becomes easy for the management team and
hence don’t give up and cheat the lender because that will push you
behind the limitations of any banking body where they will not able to
give you the desired amount due to your previous records and hence
always be an honest business owner with your investors and that includes
your lender also.
After providing NOC you will need to
cover your desired amount by giving them the proof of cash in hand or
the property of the equal amount or more than that what verifies that
you have something to pay the loan amount if your business goes at the
wrong way and you becomes bankrupt.
Have Records of your Property and Cash in Hand
Okay the second step of getting a bank
loan was providing NOC what convinces your lender to prove that you did a
fair business with your previous lenders and hence they can believe on
your business and your nature too that you will not cheat them and hence
they will show their their interest in moving their last step towards
issuing you a Cheque/Demand Draft of desired amount as loan and now at
this stage they will ask for non other than your ability to pay back the
loan amount assuming your business plan will fail and you will declare
yourself as a bankrupt due to any accident or unexpected negative
business condition.
So what is that is you can show as guarantee for getting a business loan :-
- Property papers
- Fixed deposits
- Savings
- Jewellery
And etc that says you are eligible in paying back the lending amount to the bank or finance company.
We are here to help you getting what is needed to get a business loan to support your business and hence feel free to ask related questions in the comments below, if any.