How to prepare a winning business loan request
This guest blog post is provided by the Business Development Bank of Canada (BDC), which offers financing, subordinate financing, venture capital and consulting services to 30,000 small and medium-sized Canadian businesses.
Bankers are just like other business people. They're always on the lookout for new clients and can't remain in business if they don't sell their product. For a bank, that product is money.
However, bankers also have valid concerns about to whom they loan money. Extending a loan carries risk. That's why bankers will carefully evaluate your ability to repay a loan.
As an entrepreneur, you have to understand and respond to those concerns if you want to present a solid and persuasive business loan request.
What a banker looks for
To boost your chances of obtaining a loan, you have to understand how a banker will assess your request and what you can do to help them say yes, even if you're a first-time business borrower.
In its risk assessment, a bank isn't looking only at your ability to execute a project and repay the loan. Your banker will also consider the project itself and ask questions about your financial projections, collateral, business plan, personal financial situation and due diligence on your proposed project.
To help boost your chances of obtaining a loan, the Business Development Bank of Canada (BDC) recently published a free eBook called How to Get a Business Loan: A Guide to Preparing a Winning Loan Request.
Step-by-step advice to get a business loan
This guide gives you step-by-step advice on how to make it easy for a banker to lend you money and, hopefully, get the business loan you need to finance your company's profitable growth and success.
- 6 factors your banker will consider when assessing your request
- What issues you need to consider besides the interest rate
- 3 common mistakes entrepreneurs make when borrowing money
- What you should ask bankers when shopping for a loan
- Types of collateral and how to decide which one is right for you
- 6 things you can do to boost your credibility
Download your free copy of How to Get a Business Loan : A Guide to Preparing a Winning Loan Request.
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