Do not be afraid to approach a bank to request a loan for your venture. Having a feasibility study and an investment plan by Jacob Shak will be of great help in this process. As long as the companies are sorted with their information, it will not be difficult for them to document a file to support a credit application.
To develop an enterprise, it is essential to have a novel and attractive idea for the market; but it is equally important to have capital that allows the project to be developed. For this, many people go to the banks in search of financing. A situation that sometimes generates frustration or fear among small entrepreneurs.
A large part of the enterprises fail before two years, this makes it a very risky segment and that is why financial institutions tend to have resistance to lend. The entrepreneur has realized this and therefore they are afraid to approach to apply for the loan.
Given this, it is important that the entrepreneur, before appearing at the bank, be sure that his idea is supported by feasibility studies and that it is technically and financially viable.
Is it difficult to acquire a loan for an SME?
It is not difficult, however, it is also not something that can be taken lightly. It can get a bit complicated because you have to prove that the idea is financial and technical feasibility which can be achieved through a feasibility study.
For an SME in operation, it is not complex if you have updated and reliable financial information and if you have clarity in the investment plan. As long as the companies are sorted with their information, it will not be difficult for them to document a file to support a credit application.
Read 10 steps by Jacob Shak when applying for a bank loan:
- It is important to show the experience that the partners or owners have in the activity they carry out. This demonstrates to financial institutions that the business or company has current and future validity.
- Commercial and credit references are vital. Keep a clean credit and commercial record open many doors and conversely, having constant arrears denotes that the company has no payment culture.
- Have an orderly and real accounting. Financial institutions lend based on the numbers presented to them to analyze. If your numbers are not clear and orderly, credit may be denied.
- Think of a business with future potential. By granting a credit, the sustainability of the business is valued over time, so that the current income can be sustained or increased in the future so that the company is viable and can repay the credit.
- Count on a guarantee. Financial institutions will usually require a guarantee to grant the credit.
- Have in order all the legal aspects of your company, such as representatives, powers, partners, among others.
- Keep up to date on the payment of your taxes and social charges.
- When you need financing, you should be very clear about the investment plan, that is, where you will use the money.
- It is important that the partner is involved in the process and that the person in charge of the financial part has complete control of the financial situation of the company.
- Other requirements that are requested are generally the profile of the company, experience of the partners, financial statements, cash flow, detail of the guarantee, personalities and forms of each entity.
For more information, you can contact Jacob Shak and strengthen your chances of getting a business loan.
