Getting a LOAN –

        Many new businesses fail because they are under-capitalized. It’s usually easier to borrow money when you start up a new business than when things start going wrong.

        Before you start to make your presentation to a bank, or a lending institution, think about the needs of the lender.

        Your success will largely depend on your reputation and a well-thought-out, well-presented, business plan.

A Handful of Tips to help you achieve a business loan

* Your business plan

        It should be well set out, easy to read

, and written in the third person.

        Persuade lenders their money is safe.

        Be professional in your approach. Look well-groomed, confident, and full of enthusiasm.

        Produce evidence of the demand for your service or products.

        Show you have a good reputation for hard work and for repayment of debts. Get statements from your accountant, lawyer, valuer, or any well-respected person.

* Lenders need security

They will require: –

        A record of your assets.

        A commitment from you.

        A realistic budget allows for all possible contingencies.

        Proof of your ability to repay loans with interest.

* Information you should give the lender

        The reasons for borrowing the money.

        The amount you need. Your market plan.

        Your price formula. Your starting budget.

        Your cash flow forecast for the next three years.

        Your audited balance sheet for the last three years.

* Preparing Your Business plan

        Make a clear statement outlining the project and its objectives.

        Give the business history of the firm and the management staff.

        Give the company’s financial position.

        How you plan to sell and advertise your products and services.

        Name your distributors, suppliers, and contractors.

* Prepare a feasibility study

        For new ventures prepare a feasibility study giving a cash flow analysis.

        You can have a great plan and work very hard  but if you can’t get money when you need it, you can’t get anywhere.”

Geoffrey Moss (mossassociates.co.nz.)

“Try to plan unemotionally, as if you were planning for others.”

For those in need download our FREE book “NO JOB! WHAT NOW? available from our website.

Source: Time-Savers, Moss Associates.Ltd  New Zealand; McGraw-Hill, Australia & Times Business Books,  a Federal Publication, Singapore and Time Management Secrets, Thomson.