5 Rules For Your Business Plan
To ensure that your application is assessed as favorably as possible, you have to prepare a detailed business plan that will inform the lender about your business proposal.
1. Know Your Numbers: To guarantee confidence in you as a borrower, it is essential that you are familiar with your key financial figures; it doesn’t matter if you don’t prepare your own financial statements. It includes your current income, net profit and expenditure. You equally have to include a profit and loss budget, and if you have or are starting a new business, prepare your personal credit history.
2. Estimate How Much Funding You Need: Maybe you are looking for funds to help with cash flow and operations on a regular basis, with a larger overdraft limit for occasional use, OR, you are in need of one-off funds to open a new branch or purchase additional equipment… Prepare an updated business plan, which will establish all of the factors in your application, including any partners or strategies.
3. Project Your Cash Flow: You can prepare pro-forma financial statements or projects of what your business will make going forward, making modifications based on past trends.
4. Provide Proof Of Loan Security: No lender would just jump into business with you, they would first evaluate your risk factors to determine if you and your business are a good investment or not. First you should ascertain the maximum payment you can afford by meeting with one of our bear loans brokers, who can advice you on whether you should offer collateral (assets such as property to secure your loan) or a 3rd party willing to guarantee the loan on your behalf.
5. Ask Questions: There are a couple of things we could effectively help you with; you may already be a customer with one lender, in this case discounts may be available, OR, one option may be much cheaper, we will be able to tell you whether it carries higher fees or a likelihood of the interest rate change. You are best to get us to shop around on your behalf to find out what products are on offer.
Talk to us today and we can help you compare business finance options.
*This information is not to be relied upon without speaking to your finance broker, tax agent or financial adviser.