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    Posted by Shane McQuillan 9 Jul
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    Getting a Loan to Start a Business

    In a previous article, we went into some depth as to the kind of ways in which you can successfully secure capital for your company, and we covered the distinct difference between the two kinds of investment capital available to companies. These consist of both Equity and Debt investment capital, both having their own distinct pros and cons.

    In this article, we'll be working off the assumption that you're a business looking to secure some kind of loan, so debt-based capital. While this alone would appear to be a fate accomplie, the reality is that it can be quite challenging to secure a loan. So, let's go over what you'll need to know in order to secure a loan and get your business going.

    First of all - Know how Much You'll Need and Over how Long

    It's simple to say that if you attend a meeting with a bank or business with no concrete idea of just how much capital you're looking for over how long a span of time, then the meeting will be over before it's begun.

    First thing you need to do, as a result, is to take stock of your company and forecast the amount that you're looking to secure as a loan, along with the length of time for when you believe your company will be able to repay it. With this present in your loan application, along with the following pointers, any meeting will go a lot more swimmingly.

    Second - Showcase Capital or Personal Investment Thus far

    Depending on how far along your business is in its life cycle, for any business-minded investor, regardless of if its a company, venture capitalist or bank that you're approaching for a loan.

    Being able to showcase in your pitch deck or investment proposal, that you've managed to secure investment or inject your own money into this project and still manage to turn a profit from it can really set minds at ease, especially for those you're approaching.

    Third - Show What Your Cash Flow is Like

    This is something that depends more on your business and how long it's been in operation for. At the very least, it benefits your application if you have at least a year in which to show potential investors what kind of incoming cash flow that your company has over that span of time.

    Why exactly does this matter? Banks or businesses that you may approach for a loan will have their minds set at ease by seeing that there is plenty in the way of cash coming in for your business to easily repay any loan that you had in mind.

    Fourth - Showcase Your Knowledge of the Industry

    Now that you've set your prospective investors minds at ease, applying your own technical knowledge and understanding of the industry that you're in will go a long way to winning them to your side.

    So take the time to perform a SWOT analysis of your business (Strengths, Weaknesses, Opportunities and Threats), doing so will allow you to head off any potential reservations that your investors may have, while also showing off that you're well aware of the kind of market trends that are taking place.

    With lessons like these in mind, you can take your application for a business loan a lot further, and work to take your business to the next level.


    Getting a Loan to Start a Business

    In a previous article, we went into some depth as to the kind of ways in which you can successfully secure capital for your company, and we covered the distinct difference between the two kinds of investment capital available to companies. These consist of both Equity and Debt investment capital, both having their own distinct pros and cons.

    In this article, we'll be working off the assumption that you're a business looking to secure some kind of loan, so debt-based capital. While this alone would appear to be a fate accomplie, the reality is that it can be quite challenging to secure a loan. So, let's go over what you'll need to know in order to secure a loan and get your business going.

    First of all - Know how Much You'll Need and Over how Long

    It's simple to say that if you attend a meeting with a bank or business with no concrete idea of just how much capital you're looking for over how long a span of time, then the meeting will be over before it's begun.

    First thing you need to do, as a result, is to take stock of your company and forecast the amount that you're looking to secure as a loan, along with the length of time for when you believe your company will be able to repay it. With this present in your loan application, along with the following pointers, any meeting will go a lot more swimmingly.

    Second - Showcase Capital or Personal Investment Thus far

    Depending on how far along your business is in its life cycle, for any business-minded investor, regardless of if its a company, venture capitalist or bank that you're approaching for a loan.

    Being able to showcase in your pitch deck or investment proposal, that you've managed to secure investment or inject your own money into this project and still manage to turn a profit from it can really set minds at ease, especially for those you're approaching.

    Third - Show What Your Cash Flow is Like

    This is something that depends more on your business and how long it's been in operation for. At the very least, it benefits your application if you have at least a year in which to show potential investors what kind of incoming cash flow that your company has over that span of time.

    Why exactly does this matter? Banks or businesses that you may approach for a loan will have their minds set at ease by seeing that there is plenty in the way of cash coming in for your business to easily repay any loan that you had in mind.

    Fourth - Showcase Your Knowledge of the Industry

    Now that you've set your prospective investors minds at ease, applying your own technical knowledge and understanding of the industry that you're in will go a long way to winning them to your side.

    So take the time to perform a SWOT analysis of your business (Strengths, Weaknesses, Opportunities and Threats), doing so will allow you to head off any potential reservations that your investors may have, while also showing off that you're well aware of the kind of market trends that are taking place.

    With lessons like these in mind, you can take your application for a business loan a lot further, and work to take your business to the next level.


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