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Enhance Your Possibilities of Getting a Loan

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



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