Increasing Your Odds of Getting a Business Loan Approval

Getting approval of loan application will largely depend on how you have presented your business, yourself and also, your financial requirements to the lender. Among the effective methods of boosting your odds to get approval is by preparing a business plan or a written loan proposal.

Lenders have the tendency to read the loan proposal as proof that you have a strong business management, experience and at the same time, in-depth knowledge of the market. They’ll be looking for other financial information that shows your capability of repaying the loan. After this, acquiring hurtiglån uten kredittsjekk will be easy in the future.

What about Your Credit History?

In an effort to determine your ability to repay the loan, lenders oftentimes request for a copy of your business and personal credit reports. Before you get started with the process of preparing your loan request, you’ll have to ensure that you have accurate credit history and that any errors or mistakes are corrected in the report.

To acquire copies of your credit report or even do corrections, it is best to reach out with the credit reporting agencies. On the other hand, if you need assistance in repairing your credit history, it is recommended to reach out to your local credit counseling service.

Preparing Loan Proposal

Just before you write your loan proposal, remember the 4 things you have to clarify which would be the following:

  1. The amount of money to be borrowed?
  2. How the money will be used?
  3. Your plans of repaying it? and;
  4. What you’ll do if in case you can’t repay the loan?

Basically, there are several formats that you may use in preparing your loan proposal. You can contact your lender to know the format they prefer.

In general, loan proposal has to include aspects like any of the points discussed below:

Executive Summary

Start your proposal using direct and simple cover letter or executive summary. See to it that you have briefly and concisely described your business background, how you plan to use the loan if granted, the nature of your business and you as a person.

Business Profile

You have to narrate your business history and then, summarize its current activity as well as results. Explain what your markets are, your industry and your consumers.

Loan Request

It is imperative that you’ve stated the amount of money needed and to how you have reached this amount. Include quotations for supplies or equipment for building costs and the likes. Simply speaking, provide an answer to why you need the money.