None of us like being told “no,” especially when it involves the success of something important to us. Business owners invest a lot of blood, sweat, and tears into their companies. But often, it’s a matter of obtaining financing that stands between them and their goals. Being denied a business loan is discouraging, but there may be other options available. As you continue to seek financing, here are some common questions you will be asked, as well as pointers on how you can be prepared to answer them:
- How much money do you need? Be specific. Do the necessary research so that you know exactly how much money will help you accomplish your goals. Whether it’s a business growth project or a strategy to pay off old debts, you should be able to present the lender with a precise number.
- How long will you need the money? Essentially, this question involves the details of your plan or strategy with the money. You must have something in writing that presents your business as a good risk for profitability.
- What is the money going to be used for? Show in detail what you plan to do with the money down to the dollar. Do you need new assets? Are there other outstanding debts you plan to pay off? Or will you simply be covering operating expenses?
- When will you repay the loan? Be prepared to present cash flow projections that include paying off the loan. Whatever you plan to use the money for, don’t forget about incorporating paying back the loan in that plan.
Alliance Commercial Credit Group has been helping businesses get the financing they need for over 10 years. If trying to get financing on your own has become too time-consuming or is a task you don’t want to handle, we can help take care of it for you. Our experience has given us expertise in helping businesses determine what kinds of financing will be most strategic for their particular needs, goals, and situation. Contact us about our methods for securing financing for your business.