The right strategy to apply credit for business
In the near future you are planning to start a business. After searching for existing theory, it was found that when wanting to start a business requires skill, creativity, networking, motivation, and determination.
Although everything sounds as an ideal complete package, but in reality that is often discussed just the money capital. Applying for a loan or business credit in developing a business is in the options.
In order for you to not fail to apply for a loan or credit for that purpose, here are some steps to keep in mind:
Determine the good purpose of borrowed money
Of course the purpose of your loan is to do business. However when talking about loans for businesses, there are good reasons and bad reasons. And it can be a reference whether you are worth lending by the owner of the money.
Usually, a good reason is borrowed money related to the purpose of equipment financing, property purchase, long-term software development, or product development in a particular season – such as selling clothes in the Lebaran season.
Conversely, a bad excuse is that borrowed money is aimed at coping with the ongoing financial losses – if you are already starting a business before, building an office, or acquiring a business asset that is not essential.
Determine the lot of money needed
The lender will assess the size of your business. Therefore, do not underestimate the amount of money you want to ask. Because a small business does not ask for a large loan.
Meanwhile, when exaggerating the amount of money you want to borrow and not worth the value of your business, the lender will then question.
If necessary, try to have and prove it with a budget plan that is supported by the financial projections of the business being done. For example, by including a statement of profit and loss, as well as a reasonable cash flow statement.
Know your credit score
The lender will also make an assessment by looking at the credit score or the credit ability you have as a business owner. To be safe, try to get to the bottom of what the lenders are looking for, and how to compare the scores they have, with their expectations. So, you can calculate and measure the type of business and the amount of loan that can be submitted.
Each lender has different criteria and requirements. They also have different flowers. It is better you compare the first banks that have business credit. Do a little research for the bank you want to select. The easy way is to make a comparison of business loans online.
Create a document package
When applying for a loan, there are some documents that need to be prepared. In order not to rush and can apply for loans to several banks that have been compared, prepare some package documents needed.
These documents are usually like your data as a business owner and your business plan, financial reports and projections, personal financial information.
Not tired of waiting
All loans need to process. Therefore, do not rush to get a loan after filing. However, be diligent to check your status. In addition, some lending institutions will usually require additional documents.