How to get a banking loan for starting a small business

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new roman’, times; font-size: 20px;”>3. Your financial situation

new roman’, times; font-size: 20px;”>If you have many credits, cards, loans, mortgages and a bad credit score, you would better forget about getting a loan. The bank would carefully analyze your situation, and if you were not even able to take care of your personal finances, how would you be able to manage an entire company? Make sure that your financial situation is solid, and that all your credits are paid. This way, you will have a strong advantage that is considered by the banks.

new roman’, times; font-size: 20px;”>4. A solid business plan

new roman’, times; font-size: 20px;”>“I want to build a new factory” or “I want to make a website” are not business plans. The bank would ask for details, so it is a good idea to pay a specialized company to develop a solid business plan matched on your wishes and possibilities. The plan must contain the initial investment, the projected incomes, and an estimation of time need to breakeven, and to make profits. The bank wants to know when you would be able to pay the money back, and when they could expect you to start paying the rates.

new roman’, times; font-size: 20px;”>Make sure to establish decent timeframes. You might think that you will be able to breakeven in a few months, but you will probably encounter many problems with authorizations, taxes, employees and locations, so it is better to estimate longer terms. Moreover, make sure that your plan contains a fund for investments, as a company would never grow if you spend all your profits, without investing any dime in the development of your new firm.

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new roman’, times; font-size: 20px;”>Author’s Link: Small Business CRM