Banks and other financial institutions offer a wide range of business finance options, from commercial property loans, commercial vehicle leases, and commercial and equipment leases, to simpler options such as letters of credit, overdrafts, and lines of credit.
Here are some tips on how to improve your chances of success!
1. Work out what’s realistic
It’s always important when you’re looking at loan options to be realistic. Find and compare credit options based on the amount of money you need to borrow, how you want it supplied and the type of security you want to provide (residential, non-residential or none at all).
2. Find a finance broker
The next step is to speak to a Rise High finance broker! We can help you work out what loan type and lenders are appropriate for you and your business.
Your broker works with you to determine your borrowing needs and abilities, select a loan suited to their circumstances and manage the process through to settlement. They also do a lot of the legal paperwork, and have access to a wide range of loans, and are experts in the area.
3. Have a good credit history!
Lenders are looking for two things when it comes to your credit status:
1. an existing credit relationship; and
2. a relatively clear history.
If you have an existing loan that you’re servicing on time, you’re much more likely to be successful. There are other options for those who have a bad credit score or just don’t have a documented credit history. Your broker can help you with the best options.
4. Show how you can minimise risk
Everyone loves to have less risk with more reward…including your bank! If you can show how you plan to lessen your risk, you and your lender will be much happier.
5. Be prepared
Preparation is the key to many things. Including more success when securing a business loan! When you first meet with your broker have up-to-date paperwork and tax records. Do your research and come up with an idea of how much you need to achieve your goals. It helps to know your business’s worth by listing out your assets and liabilities.
6. Have a plan
When you’re looking to develop your business you absolutely need a plan! This plan is what your lender wants to see. They can see what you want to achieve and see how you plan to achieve it.
7. Provide more than one exit strategy
Your goal achievement plan isn’t the only plan your should be making. Sometimes things happen outside your control, especially in business. So your exit strategy is really important. Have an exit strategy for as many scenarios as you can. This shows you’re prepared for the good and the bad. Your lender will have a clear idea of how you can pay back the loan in the unfortunate circumstances that things really don’t pan out.
We want your business to have the best chance of success! If you need someone on your side Rise High wants to help find the best options for you!
Contact us here or fill out the form below and we’ll contact you!