You have this brilliant business idea and you know you'll be needing some help to finance your new venture. Do not allow yourself to feel overwhelmed or discouraged by all the requisites presented by your potential lender. Read below for 5 Tips that can help you drastically increase your chances of obtaining a small business loan.

 

Idea #1: Remember that you are trying to convince your lender that a) you are good risk and b) that you have a detailed plan that will show how the money they lend you will be used by the business.

 

Idea #2: Be Prepared! You need to show that you are well organized and that you have at least invested in time and preparation.

 

Idea #3: Learn about the latest trends within your chosen industry. If industry statistics are encouraging, you will have a much greater chance at securing the loan.

 

Idea #4: Many business owners forget to include a section on their personal experience, expertise and qualifications. Remember that running a business entails many different skills, many of these we learn from experience, e.g. budgeting, purchasing, and as a consumer you can relate to other consumers as well.

 

Idea #5: Be honest from the start. A good presentation will enhance the viability of your proposal. But, if the truth is slightly twisted or they sense that you are being economical with the truth, your lender will see you as a potential fraud. So instead, be honest, learn to sell yourself and your ideas without being misleading.

 

 

So, now you have some useful tips, I hope you make use of them. Also, remember that if you have been refused by other lenders before, make sure you learn exactly why your application was not successful. (Mistakes Are For Learning) And use this information to be better prepared for your next loan application. Keep Positive!

Claudia Alcalde Strachwitz - MBA