To work and grow, any business needs money. If initially in the start-up phase, this funding is often provided by shareholders, along the way in the growth stage, a bank loan is often the first option to get the necessary funds.
Getting a loan from the bank requires training from the entrepreneur
Requires time and requires compliance with mandatory steps.
1. Calculate how big the loan your business needs. Whether it is a credit for current business (such as a credit line) or an investment project (such as medium / long term credit for equipment), you need to make a tighter calculation of the need for funding.
2. Identify the assets you can guarantee. All banks will in most cases require a lender to provide guarantees such as equipment, buildings, stocks, claims. The bigger the loan, the more guarantees you need.
3. Write a business plan; especially if you request a term loan to finance an investment. The business plan should include an overview of the business, a forecasted financial situation over the life of the loan, a reimbursement plan for borrowed funds.
4. Do a short search of the banks that are active in the market. Talk to other business owners. Banks that have a history of lending to companies comparable in size to your business are the best for approaching funding. Smaller banks are usually more flexible, bigger ones (top 5 to 10 assets) are more rigorous but are willing to grant more funding.
5. Be clear, coherent and sincere in the discussions with the bank. Make sure that the financial documents and the situations you present to the bank are rigorous and consistent with reality. Do not try to “cosmetize” the information.
6. Call on professionals to help you in the financial, accounting, and legal areas. It is very important to understand the bank’s offer, credit conditions, contract terms, and make a very well-informed financing decision.
7. Be patient. It will take a month or more for a bank to make a decision about your loan. Daily questions about the status of the case will not speed up the process; in reality, you will look desperate, which does not benefit you.