Borrowing MONEY   

Spend time planning your strategy before you seek a loan. Why do you want it? Will you be able to pay it back? Will you be making a good investment?

          Before you present your case for a loan think about the needs of the lender. The important thing is what the lender wants to know, not necessarily what you want to tell them.

          Lenders need security so aim to persuade them their money will be safe and adequately secured if they lend it to you.

          Many new businesses fail because they are under-capitalized,  or overly optimistic. New house buyers may fail if they are made redundant at work, have an accident, or have bad health. Many lenders will insist you have insurance cover for these.

          If you borrowing to buy a property, is it in a good location and has it the prospect of a good capital gain?

          Have you sufficient income to meet capital and interest payments?

Five of the best tips when borrowing money

* Collect facts first

          Produce evidence of the reasons why the loan is being applied for and a true current evaluation of the house or the business.

          Carry out market surveys to collect facts showing a need and a demand for your product or service.

          Prove your house or new business is in a good location.

          Research lenders to seek the best lending rates.

*  Prepare a sound business plan

          The business plan will help you analyse the project and clarify your ideas. 

          Your written plan should support your case for borrowing money and show you have budgeted for all contingencies.

          Your plan must show you have a good grasp of financial matters, that you have considered all factors, making best and worst case scenarios or assumptions, and that there is a good chance of a profit if the plan goes ahead. 

* Show, you have support

          Get supporting statements from professionals. Get letters from your accountant, lawyer, any other highly regarded associate to support your case and your character.  

* Be professional in your approach

          Present yourself looking well groomed, confident and full of enthusiasm.

          Answer questions honestly, clearly and succinctly.

* Show, you have a good reputation

          Produce evidence to show you are a hard worker and a good payer of services and loans.

          Lenders will usually check out your work history, your internet history, and your ability to perform. Lenders will always do a credit check on you so take care so take care to repay all your debts due.

          Never forget it takes many years to build a good reputation and only one mistake to lose it.

          When your outgoings exceed your income, your upkeep can be your downfall. Money is a good servant but a poor master. So take care.

–Geoffrey Moss

“If you need money, be well dressed and polite.”

Source: “Persuasive Way.  Tricks of the trade to get your ideas across” Moss Associates Ltd. “Secrets of Persuasion” Cengage Learning Asia, “Persuasive Ways” (Simple Mandarin) Shanghai People’s Publishing House. Also available as an e-book from Amazon.com