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Article #281: Enhance Your Possibilities of Getting a Loan

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As in everything, there are do's and Remember to speak in business language. A
don'ts regarding the successful outcome good impression is a very important
of a loan request. Keep them in mind, negotiating tool. It is what got
write them down if necessary and use them Aristotle Onassis to the very top of the
to make the best possible deal. It is all rank.
part of the preparation most people just Remember it is not a "register of the
will not take any notice of. We have seen money that comes in and the money that
lots of things happen, good and bad, goes out", it is a "financial statement".
that's why we're here, for you to It is not a track record of your "in's"
capitalize on our records. and "out's", it is your "balance sheet".
Do Not Be Put Off By Your Fears It is not "this is how we stand at
Banks need to give loans in order to stay present", it is "our current status".
in business. They want you to take one. Do Not Be Afraid To Ask For Determined
They need you, so that gives you a better Conditions
position. Perhaps you could get a loan For example, you may wish to ask for a
from a lender who is familiar with your determined payback period, explaining why
trade or specializes in what you want to you want it that way. If you are well
do. A car loan broker if you want to buy presented, well backed up by a business
a car, for example. plan and sufficiently confident with the
Most Startups reason for requesting a specific term,
Most loans for a startup will require a you will surely get it.
very safe security, since they know the It is A Negotiation, Remember?
risks of a new business. The best The agent will almost naturally accept,
antidote for this is a well-designed probably if you would provide more
business plan. collateral, or something he wants as
Tell your future lender how you are going compensation. So be prepared for this and
to carry out your business, what your maybe you might say something like,
assets are, what target market you are "instead of that, will you be willing to
aiming at and more than one contingency accept this?"
plan. And do not forget the possibilities An Important Answer
of on-line marketing, advertising and As a rule, an agent asks simple questions
sales. but, believe it or not, most customers do
Low Risk not know the answers to them or, in the
The more doors you open to success, the best of cases, they are doubtful. This
lower the risk of failure and your banker might mean you are inventing on the spur
has to know about it. Prepare a cover of the moment, or that it is all a fake.
letter, get a template from Internet if A Stupid Question
you are not familiar with the usual text, Yep, an apparently stupid question but
make a realistic cash flow and projection which produces an even more stupid answer
of the development of your business for is, "What will you do if there is too
the first three to five years. much demand and you can not supply
Fortune Making Preparation enough? Be prepared for an intelligent
Apply Onassis's technique to prepare a answer. That's what the question is asked
business meeting: Anticipate every for. To measure how sensible you are,
possible question you might be asked and when you are suddenly out of depth with a
work out a well explained answer. simple question the market asks you.






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