Top 10 Credit Tips
Top 10 Credit Tips
I've summarised for you my best Top 10 credit tips, but first I want to discuss how to approach a lending institution for your first loan.
Applications for finance should provide a potential lender with sufficient information to assess the viability of you and your business for finance.
Applying for finance? - the following key points for prepearing an application for finance will improve your chances of success.
The applicant
The lender will assess your strengths and weaknesses, and your companies past performances before making a decision on your capabilities to repay the loan.
The business project
Here is where you need to describe your business in more detail. Make sure the lendor knows the nature of your business and the reasons for the loan request.
The feasibility/marketing study
This probably is the most difficult section to complete when seeking finance. Provide quality data, because unsubstantiated estimates do not inspire confidence in a lender.
Financial
Include historical financial reporting such as profit and loss, balance sheet and also a cash flow statement. If your business is new then include budget forecasts, cash flow forecasts, and any other future projections you have to creat a level of comfort in the lenders eyes that your business will be profitable.
The loan and repayment details
Specify exactly how much you require, and how you intend on repaying the principal and interest of the loan. You should state whether you need an overdraft facility, a fully drawn advance or a fixed term loan.
Ensure that your request includes all expected costs because lender do not like it when you come back for more money simply becuase you underestimated your needs.
In addition to the above requirements to source finance I have prepared an e-book which details another top 10 of the best credit tips that I consider a must have. Don't delay and purchase your copy today by following the link below.
Order now - Top 10 Credit Tips e-book
Check out some of my great Cash flow Tips
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