3 simple rules to get that small business loan

Getting a small business loan doesn’t need to be a daunting task. In fact, there are only three simple rules to get one. Here are three tricks of the trade to secure a business loan.

By Klara Loots for Businesstrade.org 

1. Be organised

Putting together a thorough business plan will always work in your favour. A business plan is not only important for you to have but it will show any loan institution that you know what you are doing and you have a well thought out business strategy.
The research you do on loan institutions also needs to be thorough. Whether you are approaching a bank or a family member, make sure that you know all there is to know with regards to loan repayments, interest rates and other general information – what do they need to know in order to consider giving you a small business loan?

2. Be honest

This rule applies to every aspect of getting a business loan. Be honest and open in your business plan and be honest and realistic about the amount that you will need and how you intend on paying it back. Remember to check your credit records to ensure that you know where you stand in that regard. When putting your financial statements and other documents together, make sure that you haven’t left anything out – good or bad, your potential loan institution needs to know everything.

3. Be professional

Professionalism can be portrayed in your business plan, your organised financial statements and in the meeting with the potential creditor. You want to come across as someone who is reliable and someone who has integrity.
These simple rules will assist you in portraying a good business persona when applying for a small business loan. The accuracy of the small details is what you need to focus on. If you have a detailed business plan, the right loan institution for you and a professional image then you are ready to take this big step in getting your business off the ground.

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