7 Steps to Get A Business Loan

Before the hard strike of the Great Recession, it was a lot easier to get business loans. You have to meet certain requirements before the lender can grant you the loan. Given below are 7 steps that you may want to follow when apply for business loans. Read on.

Develop a relationship with the lender

Before you even need the loan, you may want to develop a relationship with the lender. The main people should get familiar with your business. Keep in mind that lenders like to do business with trust worthy people. So, let them know as much as possible about your business.

Purpose of the money

You may want to decide on the purpose you applied for the loan for. Make sure you are going to get a loan for a good purpose. For instance, you can get a loan to buy equipment, property or software. However, it’s not a good idea to get a loan to finance losses or to get unimportant business assets.

Business needs

You may want to make an assessment of how much money your business needs. If you have a small business, you may not want to apply for a large loan. However, make sure you don’t underestimate the money you need to keep your business running. Both underestimating and overestimating can cause problems down the road.

Credit score

Typically, lenders consider the personal credit of a businessman before granting the loan. So, make sure you have a good credit rating. If you have a bad rating, make sure you work on it to get it in good standing.

Finding the lender

You may want to read up on the type of lender that will best suit your business needs. For conventional loans, you can go to commercial banks. However, their parameters are strict. Non-bank lenders is another option that you may consider. Then there are region specific lenders that include banks and other institutes that are interested in economic development in those areas. Lastly, you can check out crowdfunding websites especially if your capital needs are not over $10,000. For personals, you can also check out peer-to-peer websites, such as The Lending Club and Prosper.

Loan application package

You may want to get the loan application package ready. This includes the documents submitted so as to apply for a business loan. Generally, it includes a business plan, profit and loss statements, balance sheets, and cash flow statements, just to name a few. You may want to keep in mind that lenders may also check out your social media pages while doing their research.

Hang on

Once you have submitted the required documents, you may have to wait for 15 to 30 days for a response from the lender. You can check in on a weekly basis for an update. Usually, lenders may require additional documents before granting the loan.

So, if you have been thinking of applying for a business loan, we suggest that you follow the steps explained in this article.

Steps to Successful Exporting

We all want to expand our business to new heights. By overcoming or conquering the local or domestic market the focus shifts to the international market. Almost every businessman at some or other point dream of expanding the venture to international market but only a few of them actually work on it. Most of them are scared of the loss or the charges and expenditure required for an easy export. A successful businessman is not afraid of the outcome but he focuses more on the quality of the product which will eventually lead him to success. Here are some tips for you to successful exporting:

1. Find connections:

This is the foremost thing to do. Good connections and relations help you to build a good ground for overseas business. Some people even choose to tie up with foreign based entrepreneurs as they have more knowledge about the local buyers and their mindset. Yes, this includes few possible risks but a good research will help you through.

2. Travel:

In order to learn about the market, people and culture you will need to travel the country once. Relations cannot be superficially built over the phone. You will need to research, find contacts and discuss your ideas with them in a formal business meeting. Attend trade shows or any such symposium which can help you with your venture.

3. Advertise:

Advertising is the prime factor behind every successful venture. Advertise in a way which connects to the mass audience. Find out the loopholes, the mindset of people, culture and weave them together to yield a promising advertising and marketing strategy. Half of the battle is won by convincing the customers by proper advertisements. With the internet and social media the things are more promising today. You can create websites, helpline, mail support and advertise your venture on social media platforms for an affordable fees. Your main aim should be to target the right audience.

4. Get help:

Apart from building up contacts, focus on building up an efficient staff. It is not a one way but a collective game. Success is dependent on a lot of factors with unity being the utmost. Group activities fetch more benefits than alone. Ask your staff about their ideas, suggestions in making this fruitful, appreciate them and take their suggestions into account. Often great ideas or suggestions come from the staff members which we avoid listening to.

Moreover, work on the quality of the product. These things come second to the integrity of your venture and the product. Do not compromise with it. With good quality comes impeccable confidence and with confidence everything is possible. Focus and work smartly.

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