Seeking a LOAN  

Before seeking a loan spent time planning your strategy.

            Why do you want it? Will you be able to pay it back? Will you be making a sound investment?

            Before you present your case for a loan think about the needs of the lender.  What will the lender need to know?

            Lenders need security so aim to persuade them their money will be safe and 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?

A handful of tips to help you borrow money

* Collect some facts first

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

            Carry out market surveys to collect facts showing there are  needs and demands 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 and 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.

            If you need to borrow money be very polite.

* 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 ability to perform and do an internet search on you. Lenders will always do a credit check on you, so take care to repay all your due debts.

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

-Geoffrey Moss (mossassociates.co.nz)

“A light purse is a heavy curse. – When your outgoing exceeds your income, your upkeep will be your downfall.”

Source: “Persuasive Ways. ‘Tricks of the trade’ to get your ideas across”. First published by  Moss Associates Ltd., New Zealand and in Chinese by the Shanghai People’s Publishing House, the Singapore Institute of Management, Kogan Page Ltd, U.K and Hungarian by Bagolyvar Konyvkiado.  Also published as the “Secrets of Persuasion” by Cengage Learning Asia and as an e-book and sold by Amazon.com.