Find a Finance Broker & Be Realistic
Finance brokers are invaluable. They can help you identify which loan, which lender and what loan would be appropriate for your business. They will focus on what you and your business needs to help you select the most suitable loan. They will also help you know how much you can borrow based on the business type and the security you can provide, etcetera.
Finance brokers are also a great asset as they have access to lenders, loans and rates that you may not.
Look after your Credit History
A credit history is an excellent start to obtaining a business loan, BUT ensuring it’s a clear, healthy history is essential.
This, ultimately, means having no unpaid default or warranties. The other thing is that lenders want proof that you can service a loan on time and in total amounts. Showing that you can service a loan provides the lender with confidence.
If you don’t have an excellent credit history, have no fear. There are options for those with less favourable credit histories. But, first, chat with your finance broker about it.
Minimise the Risk
Proving that you are of minimal risk to a lender is vital. A finance broker can help you demonstrate this to a lender.
Preparation is KEY
Before meeting with a finance broker, ensure you bring all your up-to-date documents and tax records with you.
Also, please do your research. Know how much you want to borrow and how you plan to spend it. Come prepared with the knowledge of your net worth, your credit score, your security options and your financial position (list your liabilities and assets).
Plan for the future
A good business plan is critical, regardless of the type of business you want to finance. A good business plan demonstrates that you know what you want, what you’ll spend the loan on, and what goals you want to achieve from financing.
Business plans give lenders confidence.
Have multiple exit strategies
Lenders want their money back, so have multiple realistic exit strategies to prepare you if your business plan does not go to plan. Lenders will also often ask for at least three different exit strategies, so come prepared.
Chat to the team!
If you’d like extra help securing business or commercial finance, and you’d like a report put together take to a finance broker, please contact usΒ here.
If you’d like to gain more free information, check out our socials!