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Selasa, 23 Februari 2010

Predicting Expenses - part 2

Applying for the Loan

In order to be successful in acquiring a loan, you must make a written proposal. Your goal is to convince the loaner as best you can. Failure to do so may result in not getting the loan and jeapordizing your company.

The best start with your written proposal is to start with an introduction, such as a cover letter. In a concise manner, introduce yourself, your business, the amount you wish to be loaned, the purpose of the loan, and how you plan on repaying the money. Imagine that someone is coming to you asking for a large sum of money. Would you be willing to loan money to someone who will waste the funds and have a low chance of repaying it?

The loaner may not be as familiar with the business as you are. Be prepared to answer questions and show that you know what you are doing. You need to make a good impression as a capable and understanding entrepreneur.

You will want to present a number of information to your loaner. Be prepared to show them things such as:

  • Business & Personal Financial Statements
  • Business & Personal Tax Returns
  • Business Plan with Projected Budget
  • Plans of Repayment

Also be prepared to show some means of collateral. This includes any assets and property. It is very unlikely that a loaner will agree to a loan without some form of collateral. Collateral is property acceptable as security for a loan or other obligation. If you for some reason cannot pay the money, collateral will be taken instead.

Communication is key when dealing with loaners. Keep them updated with how your business is fairing. Bring them good and bad news. Especially when you are not able to make a payment. Explain the reason why you are having trouble and any actions you are going to take to fix the problems. Many lenders are flexible, they want to see that you are actually planning on
paying them back.

Lastly remember to make a good impression on the people you are dealing with, you may not get a second chance. Dress nicely and have a neat appearance. Your educational or other background may be looked at by the potential investor. They want to know that they are dealing with someone that is trustworthy and professional.


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