How to get faster business loan

MY previous article was about the importance of a good business plan to capture the attention of bankers, or potential investors. Many have asked me about a business plan to get a loan.

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Project Financing Strategy

When it comes to Project Finance, if you need the cash yesterday, please do not apply. Project Finance is precise and onerous and requires months of work and planning.

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Why Banks Say No

Over 20% of companies are underfinanced. But when you look at companies that have grown their revenues by 20% or more over the past three years, you’ll find that over 30% of them are underfinanced!

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Preparing a Loan Proposal

Whether a small loan from family or friends at the start or a sophisticated term loan and operating line of credit from a regional commercial lender, most companies borrow some amount of capital along their path to growth.

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Applying for a Business Loan

When applying for a loan, you must prepare a written loan proposal. Make your best presentation in the initial loan proposal and application; you may not get a second opportunity.

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How To Write A Business Loan Proposal

In addition to standard loan documents, a lender expects to see a written proposal when someone applies for a business loan. This is your chance to highlight the most exciting and promising aspects of your business and to prove to your lender that you’re a prime candidate for a loan.

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What is “Collateral” ?

Collateral refers to assets that you are willing to put up to secure credit, such as a small business loan.

Your house (if you own it outright), your car, property, or equipment are all examples of tangible assets that you may be able to use as collateral.

Loans that use tangible assets as collateral are called secured loans (as opposed to unsecured loans). The advantage of secured loans is that they often have lower interest rates than unsecured loans.

One potential problem with collateral is that if you are unable to pay off your loan as scheduled, the assets you used as collateral will be seized and sold, and the money raised by selling the assets will be used to repay the loan.

For many small business people, there is also the problem of simply not having enough collateral to get a secured loan from a lending institution.

They may have to depend on equity financing instead.