How To Get A Bank Loan Approved!
(Five Things You Definitely Need To Know Before You Ever Approach Your Local Banker!)
So are you actually at the point that you definitely feel you need a bank loan? If you are, you need to know how to get a bank loan approved.
Believe it or not (a ton) of otherwise savvy entrepreneurs just like you, consistently make the five following (all too) common mistakes, as it relates to trying to get a small loan of some kind approved.
And as a direct result, about 90% of the time (or more!), they fail to do so!
How To Get A Bank Loan Approved!
(The Five Things You Need To Avoid When Applying For Practically Any Type Of Loan!)
So “what’s” it gonna be entrepreneur? Are you giving up equity? Creating stock or are you simply taking on some new debt? Have you even thought about the pro’s and cons of each?
Are you seeking an unsecured business loan (glorified line of credit)? (If so, good luck with that!) Are you seeking – purchase order financing- or perhaps something more mundane as good old equipment financing. The main point of all of this, ties nicely into concept # one.
1.) Common mistake to avoid # one: Entrepreneur, know and understand “what” and “how” many potential financing options that you have. And which “if” any are right for your specific situation.
2.) Common mistake to avoid # two: Does the bank (and thus) the actual loan officer that you’re about to approach for the loan, have a minimum credit score requirement, that you need to meet, before they’ll approve your loan request. Do you even know if they have any minimum FICO loan standards?
Entrepreneur, the fact that you’re not actually borrowing money from a licensed and insured institution, might be a problem. Borrowing from your well meaning friends or family members, may mean you’ll have to pay a higher interest rate! And not borrowing from a bank, probably won’t help you establish a future credit history!
4.) Common mistake to avoid # four: When it comes to actually borrowing money, there are a ton of potential conventional factors to be considered.
And some not so conventional ones. For instance, the fact that a new major (better financed) competitor entered the market six months after you did, and because their basically a subsidiary of a much larger major corporation, they can afford to basically capture their first time customers at cost!
Which means, they can afford to slowly (systematically) squeeze 97% of their competitors, (hopefully not you!) by keeping initial profit margins to a bare bones minimum! The real point is this; if you need to borrow money and you happen to borrow too much! And you’re paying a rather exorbitant interest rate, while the aforementioned is going on!
The Bottom Line When You Borrow Money Is You Must Pay It Back On Time! Or Else!
You might be in trouble! Or conversely, if you happen to borrow too little and your still legally on the hook for the loans repayment, and the loan doesn’t help you accomplish your goals! That’s no good either! So you need to have a pretty good idea -ahead of time- “how” much you actually need.
5.) Common mistake to avoid # five: And last but certainly not least! Entrepreneur, if you already have outstanding personal debts, such as your home mortgage loans, unsecured credit card debt etc.
Your banker will most definitely consider “how” you’ve handled the repayment of those debt obligations, as an indicator to your future ability and willingness to repay any future loan obligations!
Basically, without sugar coating anything, that’s how to get a bank loan approved! Any questions?
Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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You Keep Your Payments Current And More Times Than Not You Can Borrow Larger Amounts The Next Time Around!
Extremely important note: And if by chance, you happen to know any of the lesser known podcasters, who also target small business owners, service providers or aspiring startups entrepreneurs etc.
And they’re pro-actively looking for potential guest speakers. Please don’t hesitate to-either- pass their name and contact information directly to me or vice versa! Thanks!
(Click the link just below, and watch the first video at the top of the page, if you’d like to see the entire 33 minute replay, of a guest podcast on marketing your small business or service. I Recently appeared on.)
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