We have established how challenging it is most of the time for small businesses to get loans. However, as we said, there are always ways to increase your chances of getting the loan. We continue with our two-part series on what small businesses should do before applying for small business loans.
- Organise your documentation
Financial and business documentation will not just take you a long way in terms of loan applications but for the rest of your business operation. Knowing how much cash flow you have on top of liabilities and expenses will tell you up to what you can afford and how much you need.
In terms of loan application, documentation will serve as evidence for your application. Include everything from your invoices to bank statements, product prototype designs, competitor analysis, forward revenue projections and business insurance policy details.
- Promote Yourself
Once you have gathered everything about your business then you can see your strong selling points. Sell yourself to the funding provider. To list out your strong points accordingly, ask the following:
- What makes you better than competitors?
- Why should lenders invest money in you?
- What are your repayment plans?
- What assets or deposit will you use for loan security?
- Where will the funds be used?
Knowing your business well will help you get access to the right capital. Let lenders see the potential you see in your venture. If you’re looking for a capital provider, talk to our Gapcap team today. Browse through our site for more information.