Loan is the way of raising or sourcing money to expand your existing or new business. Getting loans to fund a business is very important, especially if you don’t have adequate capital to finance your enterprise. Some financial institutions are very much ready to finance your trade, but you must meet up various conditions. The requirement could be inform of your available collateral whether fixed assets, real property investment, share and bond certificates, mutual fund benefit, life assurance policy, landed property.
When your collateral is up to date, you can now approach the bank for loans. The bank representatives usually visit your business premises to access the facility on ground. This will help the official to ascertain your level of competence as whether you can manage the available resources and the cash if release to you. The bankers will demand for your detailed feasibility study or business plan.
The business plan must contain the amount of funds needed to run or expand the business ventures. Your savings, if available, should be stated and the amount you can borrow from your associates, friends and relatives. You must disclose whether or not you received loans from any other banks.
Tell the lender the amount you plan to introduce into the ventures. The feasibility study should include sales forecast, market analysis, price audit, cash flow analysis, business and environmental projections. Projected trading, profit and loss and balance sheet can be submitted to bank for approval of your soft loan. When all these conditions are met, then you will smile to banking hall to collect your loan package and before you know, your business will start booming.
To end with, your proposal or business plan must show the total sum of loan, when the money is required, the sector you plan to invest the money, date and time of loan repayment and details of your collateral. You can get loans from the bank, associates, friends or relatives. Ensure to prepare an all-inclusive business plan to proof the business has the ability to make the required money from daily sales and has the capacity to repay the loan at the date stipulated on terms and conditions in the loan.