5 Tips for a successful business loan application
Whether in the context of the operation of an existing business or for a creation, entrepreneurs must sometimes request a professional loan. The stakes linked to this request can be significant, which does not facilitate the process.
Submit a clear and structured loan application fileIn the majority of cases, the banker to whom you submit your loan application will not decide whether or not to grant it to you. He will read your file, listen to your presentation and defend your file before a loan allocation committee. You must therefore build your file accordingly.
A – Identify the information needed for the loan application
To facilitate the work of your bank adviser, you can start by contacting him and asking him for the elements he needs for his internal file. This will put him in a good mood while giving you an image of rigor (which will be important for the involvement he will put in defending your file with the commitment committee) and will help you identify the elements that come into play. for granting the
B – Submit a clear and structured loan application file
To be able to defend your file, your interlocutor must understand it and take ownership of it. During your presentation interview, give him a qualitative and synthetic file (neat, clear and structured). This will allow him to assimilate your project, his motivation to defend your professional loan application is one of the keys to a positive response.
C – Work on the quality of your oral presentation
Banks seek to reduce the risks associated with loan repayments. Your goal is to reassure your banker about the quality of your project and to convince him that the full repayment of the loan will not be a problem.
So be clear and get to the point without dwelling on the details. Make a global and synthetic presentation that you will have taken care to prepare. Highlight your strengths and prospects, taking care to support them with a few concrete elements (figures, market research, customer feedback, etc.). The more your presentation is simple, clear and complete, the more your interlocutor will be able to reproduce it in front of the committee.
2 – PRESENT A SOLID FINANCIAL STRUCTURE
Present a solid financial structure The plan and the financial structure of the project are of paramount importance. The involvement of the company or the project leader is also of great importance. Most often, banking institutions ask the entrepreneur for a minimum financial commitment of 30% of the total financing requirement as well as guarantees to cover a significant part of the amount of the professional credit requested.
3 – PRESENT A GOOD QUALITY BUSINESS PLAN
Present a good quality business planThe business plan, or business plan , is an excellent communication tool, it serves to arouse the interest of the reader, arouse his interest and lead him to wish to participate. He usually presents the project in 3 parts:
The team and the structure that will carry the project. A partner relies above all on the person or the team who will lead the project. It is therefore essential to introduce the team and to reassure the reader as to its ability to support the project and ensure its technical implementation, financing and marketing. It will also be necessary to present the legal structure of the project (legal form
4 – CHOOSE THE RIGHT ESTABLISHMENT AND THE RIGHT TIME
Banks are first and foremost commercial companies, they have objectives and must also comply with regulatory outstanding levels. While they are generally on the lookout for entrepreneurs who set up their company in order to find new customers, they may be more attentive when the customer is acquired or when their business loan objectives have been reached or are about to be reached.
5 – FINANCE ASSETS AND NOT WORKING CAPITAL
Banking establishments prefer to finance assets on which they can take a guarantee than WCR or a cash requirement. Adapting your professional loan application accordingly facilitates the acceptance of the file.
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Founder of Le Blog du Dirigeant. Graduated with a master’s degree in management (law, finance, marketing and management) and former senior executive, Laurent Dufour has been advising and supporting creators and managers to create, develop and manage their business since 2010.