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First, check your credit history report to make sure it is correct. Since taking steps to improve your credit score may take a three to six months, start this process as soon as possible. Check to see if there are some simple steps that you can take to quickly improve your credit score, such as bringing an account balance to below 80 or 50%, going to www.optoutprescreen.com to opt out of free credit card offers, or closing an unused revolving credit account.
Next, make a short list of lenders you are considering pursuing for a loan. To maximize your choices of funding programs, your list might include a bank's commercial lending department, a local credit union advertising to businesses and an alternative business lending company, such as US Business Finance Corp.
Call or visit each lender's commercial loan officer and see if your business is the type and size they work with. If your business fits their target business profile, pick up a loan application or download one from their website.
Create a checklist of all items needed in the loan application, such as tax returns and financial statements, that the lender requests and set yourself a timeline when it will all be assembled. Work with your accountant to assemble the necessary documentation.
Prepare your presentation and have the answers (and backup facts and figures) for the following questions:
- What is the amount and purpose of the loan?
- What assets to you have that can serve as collateral?
- How much does the ownership have invested in the company?
- How long are you looking for the payback period?
Your business presentation should include a clear description of the experience and key talents of your management team and key employees. Rehearse your presentation. US Business Finance Corp can assist business owners in the preparation of their business loan presentation. Your confidence in your business success should be reflected in your assuredness in your presentation.
A practice Q & A session helps you learn to treat every question as an opportunity to shed more light on your tremendous business opportunity. Be as specific and factual as possible in your answers.
With your presentation ready, your application filled out and all the attendant documentation ready, call your lender and make an appointment. Plan to keep the presentation to a half hour and invite your lender to take a tour of your business. Leave knowing when you can expect an answer on your loan application.
Always follow-up with a thank you letter or email and a phone call to your lender. Your follow through reinforces your seriousness about securing the business loan. If further negotiations occur during follow-up calls, always get the conversation memorialized in a letter from the lender.
The lending professionals at US Business Finance Corp have helped many businesses prepare for their business loan presentations and then used our connections in the alternative business funding industry to help secure small business loans. If your business is expanding, looking for additional operating capital or looking at acquiring commercial real estate, talk to our financing experts first! We work to improve your business and establish a long-term working relationship that is profitable for you.