Who says short term loans are hard to get?
So what if the time comes that you suddenly need to apply for any short term loans.
Are you in the position right now to satisfy and address your bankers number one (main) concern?
If not, what three specific steps can you take right now to dramatically increase your chances of being approved?
Is There A Secret To Securing Short Term Loans?
In a word “no”however, that won’t stop the guru and gurette’s from implying that there is, and for just $997 )or more) they’ll share their “seven proven secrets to appearing more credit worthy! (even if your just starting out, and don’t have an established customer base yet!”)
hopefully you get the point there.
In the real world,however, the person on the other side of the desk, that being the loan officer at your local bank.
They need specific answers to at least three vital (magic) questions.
And if they don’t get them, guess what entrepreneur, you do not pass go and you do not collect your $200 dollars to boot.
(That’s a card from the old Milton, Bradly board game called “Monopoly.” for those of you unfamiliar with the lingo.
Anyway, for just a moment, pretend your the local loan officer, that’s under extreme daily pressure to successfully accomplish two things.
A.) Consistently find fresh new consumers that are credit worthy enough to extend (both) short and long term lines of business and consumer credit to.
B.) and to minimize any losses suffered as a result of a credit customer, not being about to (either) completely pay the loan back on time, or not be able to pay it back at all!
That being the case, which side of the ledger, do you think your pre qualifications procedures will fall on? slightly more conservative or extremely fast & loose?
Because remember, your job hangs in the balance.
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The Three Magic Questions You Need To Know The Answers To Before You Apply For Any Short Term Loans!
Because the more accurately you can answer these three vital questions, the better your chances are of getting your loans approved.
And even before you get to the actual sit down with your potential lender, let’s be sure that you’ve covered all of your preliminary bases.
Meaning- did you get (either) your attorney or CPA’s help with constructing a very complete, yet concise business plan?
That you can present to the loan officer, to demonstrate that you are a good credit risk.
And of course let’s not forget to also include a personal financial status document, that present an even clearer (current) assets to debt service ratio.
And if this is not a start up loan (of some kind), be sure you include at least three to five years of past tax returns etc.
And depending (of course) on whether or not your seeking a secured or unsecured line of credit and for how long. These three “magic” questions will vary.
Now let’s get down to three “magic” questions, what da ya say?
1.) Critical question # one: Are you the only “principal” (owner) involved in this enterprise, as it’s currently structured? Meaning- is it a partnership, LLC (Limited Liability Corporation), or a sole proprietorship DBA (Doing Business As) etc.
2.) Critical question # two: Do you have actual sales projections (via) a preliminary cash flow projection statement, to demonstrate your businesses ability to repay the loan back, over the projected period of time.
3.) Critical question # three: And the biggie! Do you have a viable (translated) practical alternative to repay the loan, in the untimely event that your expected source of revenue dries up?
Hello! In other words, entrepreneur, if your main plan doesn’t work out, like you planned, do you have a viable back up plan? And if so, they’re going to need to see & evaluate it!
Basically, these and many other challenges, is what makes securing short term loans such a challenge!
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