While it has become increasingly difficult to obtain a small business loan it is by no means impossible. Phoenix small business investing experts state that it is important for small business owners and entrepreneurs to remember that lenders need to make loans to survive. And if you do not get a loan from a lender you should not get discouraged. You can continue to go to lenders until you get the money you need for your business.
It is important to go into your interview with a lending company well prepared and with confidence. Phoenix small business funding officials state that there are typically five key things that lenders consider when determining if they want to lend money to an individual:
- Well-developed business plan
- Credit history
- Feasibility of business success
- Overall experience
- Educational history
Phoenix small business investing companies highly suggest that you come up with a detailed business plan before going into your interview. In addition to this, it is also highly recommended that you anticipate and prepare for commonly asked questions, such as:
- How much money will you need?
- How long will you need the loan for?
- What will you specifically use the loan for?
- How do you plan to repay the loan back?
- If you do not get the loan what will you do?
Your business plan should include a cover letter, financial statements, cash-flow projections, and expected profitability of the business. It should also include financial projections for at least the next three years. Phoenix small business investing officials state that if you want to clinch a deal with the lending company that you show proof and figures for everything that you say. You do not want to stretch the truth or speak in broad terms.
Lastly, many small business owners and entrepreneurs neglect to think about or realistically discuss risk factors, according to Phoenix small business investing experts. Being able to discuss potential risk factors and state how you would manage and combat them is important, especially if you have never borrowed before. A few minor tips to add a finishing touch include typing all of your loan documents, dressing to impress, and never displaying a negative attitude.