Let’s face it, if you want finance for your business, times are hard out there at the moment. Banks and other lenders are a lot more cautious about who they’re going to lend to…at the end of the day they want to be paid back! So bearing that in mind, here are my top do’s and don’ts for getting finance for your business.
DO….WRITE A BUSINESS PLAN
You’re not going to get very far without doing this tip. Lenders will want to see that you’ve thought everything through. They may also come back with questions, comments and concerns about your plan – don’t expect that the first time you hand it in will be your last. But as long as you’re patient and are prepared not to give up, you should eventually get what you’re looking for.
DON’T…THINK IMMEDIATELY ABOUT A BUSINESS ANGEL
How many times recently, have I heard people saying they’d like to get money from an investor or business angel? There are other options you know. And if you’re looking for less than £100K, you might be better off going to see what a bank can do for you.
DO….SHOP AROUND
These days, shopping around is more important than ever. Visit all the lenders you can think of and see what they can offer you. Don’t be tempted to go with the first lender who offers you money – make sure that it’s the right deal for you.
DON’T…GIVE UP
Lenders want to see that your business idea is viable and want you to be realistic about being able to pay the loan back. Bearing this in mind, it is highly likely that they’ll come back to you asking for some more information. Don’t take this personally – they’re just trying to reassure themselves that you’re a good risk. Give them the information they’re looking for without getting stressed and don’t give up until they say no for the final time. I recently worked with a client on his business plan and it took 7 attempts to get the funding he needed. He was ready to give up, but we hung on and got the money.
DO…HAVE SOME PATIENCE
Your loan is NOT going to be sorted out next week. In this current climate it is taking between 1 month and 6 months to get the money you need so plan your business around this.
DON’T…BE UNREALISTIC
Time and time again I hear people say “I’d like to borrow £x” and when I ask them what the money is for, often they’re unable to tell me. Make sure you know exactly what you’re borrowing the money for and be realistic about this. There is no point wanting to borrow £20K and only being able to spend £5K. Would you lend me the money if I told you that? No – and neither will lenders.
If you found this article useful, you might also be interested in the other guides we’ve got:
• How to get the money you need to start your business
• How to pitch successfully and wow investors
If you’d like more information about either of these guides which take you step by step through getting the money you need, please feel free to contact me using the information in my profile.
The Do's and Don'ts of getting finance for your business - To learn more about this author, visit Helen Dowling's Website.
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Leanne Hoagland Smith
Are your sales where you want them to be? Will you be one of the few who achieves sales success or one of the many who have failed to change? So what are you doing to change those results? Let’s be honest, with companies moving globally and at lightening speeds, the traditional business solutions are outdated and dead. My approach moves your business out of its comfort zone and secures your competitive advantage now. If you are seeking to increase sales, build customer loyalty, create a culture of great attitudes or just achieve some sleep filled nights, then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspecialist.com/customer-loyalty.htm Give me a call at 219.759.5601 for a free strategy session. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland Smith's Website |
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