Sacco’s and other financiers don’t just give away business loans to all members. If you want to increase your chances, there are two things to consider before applying.
1. You need to show you can repay the loan
Before applying for a loan as a business owner, it’s smart to have a clear understanding of exactly what type of loan you want and why you need it. Then be prepared to show how you are going to be able to generate the necessary cash flow to repay the loan.
“You can’t just come in and say, ‘I need this amount of money.’ Its ok, but you have to be able to show you have an understanding of your business and what’s driving the need for the credit, and what you’re going to do with it. What may sound like a risk to someone from the outside may be a very sound business decision for someone else. When a lender shows they can repay the loan, the credit staff work is made easier and this may speed up the process considerably.
2. Get organized and have a solid business plan
It is important to have all of your financial documents organized and a business plan ready to submit before applying for a business loan as this shows some level of commitments and responsibility. A financier will ask for sources of income including 6 months statements .When you have all of that information in front of you, and the business owner has a plan with what they’re going to do with the money, this would completely help out in the process of loan approval
A detailed business plan is something every lender will look for, and if you have a road map and a plan to repay the loan, any financier will be willing to support your business.