Friday, October 10, 2014

Get a Bank Loan?

In the past few weeks, I’ve been reading articles in the journals about many business companies trying to obtain a bank loan. I was curious to see what is necessary to get a loan so that you can expand and grow.
I am happy to report this is a good time to see if your company will qualify. If you do, your bank can make funds available in several fashions.

The first option is to establish a “line of credit”. Actually, you already have this because you write checks based on how many dollars you have in the account. The next step is to look for an “installment business loan”. Normally these are used for the purchase of capital goods or debt consolidation. If real estate is involved, such as building a new operation or obtaining a new location, it is considered a “real estate” loan.

Before I go any further, it is imperative to appreciate how much the bank officer wants to know about you. When you bring your application to your bank, if the loan officer is satisfied, it will be sent to their board for approval.

Prepare your financial statements from the last few years. Provide a record reflecting payments. When they see you took 2% ten days more often than paying net 30 days you will look good!

Your company’s annual volume, gross, and net profit must be presented. Talk about your staff (they are key employees), and describe your customers! Explain how you plan to utilize the money. Present your business plan

The branch manager at your bank helps you when you indicate you are interested in obtaining a loan. I found today that they are now willing to listen to you. They will pass on your request. If it is practical, the bank may also assist you in obtaining a Small Business Loan where the government will be backing you.

Do not be bashful! Keep in mind that your company, employees, as well as all your customers, will be proud to see you expand.

No comments:

Post a Comment

Share your thoughts with Shelly!