WHAT WILL THE BANK ASK ME WHEN I GO FOR A SMALL BUSINESS LOAN
This is an excellent question. It’s one we get all time. In this article we will be discussing some of the questions you can expect from your bank. Knowing these questions ahead of time will help you to be better prepared.
1) What do you have as collateral? Most do not lend money to startups. You need to be an exceptional case for this to happen. What do you have as collateral. You will need something to put down. Thunk of it as some type of reassurance that you are a good investment. All lenders and banks do this. It’s best to figure this out now.
2) What is your plan of action. The bank/lender will require a comprehensive plan of action. Everything has to be included. Start working on it right now.
3) Where are your financials? We mean all of it. Banks/lenders want everything from accounts receivable to accounts payable. It all has to be there. It all has to be in detail too. This is not the time to be lean. If this is not there, the banks and lenders will shut the door. This is business, it’s not personal. Do not take it personally. It’s time to put on your business bonnet now.
4) All of your personal financial information and audits need to be there. Past receipts have to be in here too. You also need to include information on insurance. Most banks/lenders will not take a chance on you if you do not have the insurance. Think of it as extra collateral.
You can find out more at some of the lender sites. These sites will give you a comprehensive breakdown. The first rule of business is to be prepared for everything.