How to Get Approved
by Phil Trumble
Startup businesses have trouble securing financing at the best of times, and it can be even more difficult during economic slowdowns. To stand the best chance of securing those much needed funds, follow these four steps to cement getting approved.
The higher your asset value the more money you are able to borrow. Be careful not to overextend yourself as you are liable to lose each asset you use as security against your loan.
Have a good income record
Have your old tax returns on record to demonstrate that you have had a good history of income. Even though starting a new business will affect this, if it is demonstrated that you are capable earner then it does make the lender less cautious.
Account exactly where the business loan will be allocated
This is vitally important to getting your loan approved
at the maximum level. If the lender can see where exactly the money is going they can ascertain if your application is viable. If you just make an application of $50,000 with no indication of how you are going to spend it then you may well get rejected. If you make an application for $100,000, where the total is itemized you are likely to be approved:
- $15,000 is for premises
- $50,000 is for equipment
- $25,000 is for inventory
- $10,000 is for staff
From this quick list, the money lender can see that if you default they can retrieve money from equipment and inventory that will account for 75% of the total loan as well as the security you have put up.
180 Business Loans is an Australian business financier that provides cash flow solutions to businesses experiencing financial difficulties. You can find out more at http://www.180businessloans.com.au .