4 Personal Questions That Will Help You Get A Small Business Loan Fast

4 Personal Questions That Will Help You Get A Small Business Loan Fast
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Can You Use a Small Business Loan to Buyout A Partner?

Can You Use a Small Business Loan to Buyout A Partner?

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Most entrepreneurs started off wanting to get a loan of some sort. We had this big dazzling idea… it played out just right in our heads and we were sure we could pull it off. There was only one restriction; Money. Off course, this scenario is familiar because money is the biggest factor in unfulfilled business dreams.

Some people flunked because they wanted too much too soon, not everyone can start big and not everyone would get a huge loan to start on a huge scale, but for those who are willing to start small and work their way up scale by scale, all we need is a little loan.

For some reason the fact that we term the loan “small” we almost expect people to be standing by the street handing it out to us. Fact is, if it were that easy we would have the money ourselves. A loan is a loan and there are certain things that qualify us for a loan, the amount for a loan is not what really matters though it matters quite a bit in its being readily available.

Here are a few questions that you should ask yourself, you will get your small business loan faster if you answer correctly.

1. How Much Money Do You Really Need?

One of the major errors business people make when they are seeking these kind of loans are making either a gross under evaluation of their business needs or an over estimation. I know that the reason for over estimations is to create a safety jacket in the event that something unforeseen comes up and the reason for underestimations is to get the loan easier so something can start at the very least. Problem is, lenders look for accuracy and veracity as a key ingredients and these two will be seen as lacking in these two scenarios.

The problem with these estimation problems is that the reason your lenders are asking you for a figure is because they need that figure to help estimate your business. When you give an over bloated figure, your idea has got to be grand enough to cover that in their mind.

Generally, you would have to have a breakdown in your application and fact is, many of the items’ prices can be verified. An overestimation easily makes lenders doubt your integrity and an under estimation makes them doubt how thorough you are and hence your ability to run the business through.

The idea is to make sure your breakdown figures check out and then find your safety jacket in that miraculous section called “Miscellaneous”.

2. If You Were The Lender, Would You Lend You Any Money?

One of the hardest things to do in life is to introspect; self analysis is a hard thing to do honestly. The issue at hand is how to get a business idea flying and in the business world everything is strangely sincere; its Strategy, figures and results. Competence is measured by these things.

Every requirement your lender needs from you is their way of reading into you. They ask for a collateral to see if you can pay up what you need. They ask for a guarantor, in case they ever need to disbelieve your previous answer. They ask for an application and a breakdown to see how much you have thought about the business and to see how thorough you are in your strategy. They ask for bank statements to see how much money you do have in case you needed to pay back. They ask for Credit history because, well… history has an uncanny habit of coming around.

My point is that its all about you really; So if you can figure out the answer to these questions that they are asking you will most likely scale through the process. Are you thorough? Can you pay back the loan based on your projections? Does your application show the attitude of a person who can execute what you presume on paper?

Bank boards and Loan boards of financial institutions usually complain that they throw out more applications than they approve because the applicants don’t appear serious or genuine! Sometimes it is not the money, it is you.

3. Do You know Who To Go To?

This question is only relevant if your answer to the last question was “Yes”.

I see the people all the time who have given up on ever getting a loan because they didn’t get approved a couple of times. I know the feeling I have been there, but this vital question helps you find out why.

Not all loans are open to all kinds of businesses and even if they say that they are, your sector might not be their emphasis. This could cut of a large percentage of your chances going in. You have to seek loan givers that are either general lenders with no specific emphasis on any industries or that are specific on your industry.

Besides, today you have far more options, you have individual Lenders setting up Loan schemes, you online Lending platforms and you have Companies setting up loan schemes for employees. Within all these categories are sub-categories and you have to be careful and precise if you want a loan application that will most likely progress.

The need for this precision is so imminent that Guarantor Loan Comparison; a company in the UK is making a real impact by doing the leg work for people and connecting people that are interested in guarantor loans with the lenders that are most suitable for them. Precision is key if you want to get a loan fast; know exactly who to go to, do the research properly and don’t just jump in because they said “loan!”

4. Do You Have An Idea Or A Vision?

I realize that the conventional term is “business idea”, but when you go up to possible investors or Lenders they are not looking for people with ideas, they are looking for a business visionary. A business idea is enough to say what you want to do with the money and in presenting an idea you may be able to show them how it will work up until it pays them back their money. A vision goes beyond that point, way beyond that.

People may occasionally give to great ideas, but people can rarely resist a strong vision. In many cases investors and lenders have given advice to peddlers of strong visions to adjust their ideas, but no one can give vision to an idea; you have to do that yourself or you cannot pull it off.

Vision affects your gait, your confidence, your hunger, your strategy and it definitely will affect how fast you get your loans.

Loans are not the issue; you are. Get yourself straight and you will probably just have to wait on the credit alerts.

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