Improve the Odds of Getting that Business Loan

There are many subtle ways to get the deal you want. Entrepreneurs who are creative and persevering will try whatever it takes to get the package that they need. One of the easiest strategies to get your loan proposal accepted is to provide the lender with all of the necessary information in an organized manner. Too many borrowers don’t take the time to provide clear, concise and organized documentation and are therefore either rejected out of hand or needlessly delayed.

The lender must completely understand your business operation (its history as well as its future) and your loan request. All of this information should be neatly documented in order to provide a complete picture of the business, including the necessary facts and figures to approve the proposal. Without sufficient data to answer all questions that may arise, the lender will have to either request more information from you or take the easy way out and simply say no to your application.

A lender may often give a borrower his or her complete attention at their first meeting when the loan proposal is submitted. They may be ready to begin processing the loan request immediately. They are, after all, paid by commission. However, if the process is delayed because you failed to provide sufficient information or respond promptly to the lender’s request, he or she may lose the momentum that had been created for the deal by your brilliant presentation. Don’t trip yourself up in that manner. Instead, be at the ready with information and answers about your business while the lender is interested and attentive to your deal.

Regardless of how strong or weak your proposal is, it will sound much better if it’s presented in a confident, enthusiastic tone. Your positive demeanor can be quite effective in winning a favorable impression from the lender about the proposal. Enthusiasm is important to demonstrate that you yourself are confident toward the proposal and the goals of your business. Confidence always carries over to the person who views it, and your lender is no exception. It can actually assist him or her in approving the transaction.

By accentuating the positives, you force the lender to focus on the successes instead of the failures. Even if the business has had its share of losses, your emphasis should be upbeat and on the wins that you’ve experienced. This will reinforce the reasons why the lender should say “yes” to you and your company.

Convincing the lender to provide financing is much like selling your products or services. You have to identify your prospects, qualify them, make the sales pitch, and close the deal. Getting your lender to make the loan is actually no different.

Research the lending market and find out which lenders are best suited to make the type of loan that you need. Determine which of them has the most interest in the market that you operate in. See who wants your business and is willing to invest the time and energy to help you succeed. Once you’ve found the right prospect, make sure that the lender understands your business and what you’re trying to accomplish. Present your proposal confidently, in an organized and complete package, clearly and concisely stated.

In addition, be ready for any objections that the lender may put forth. Answer all questions with direct, documented information that will satisfy his or her concerns. If you’re not sure how to answer a specific question, it’s best to call the lender back as soon as is practical to provide the requested information.

In concluding the meeting, summarize again your business strategy, restate the deal, and go over again any answered objections. Your goal is to make is logical and easy for the lender to give you the answer that you want.

blog comments powered by Disqus