Maricor Bunal
Perfect timing, careful planning and sufficient funding are the keys to start a business with a bang, as many entrepreneurs say. Now if the financing part is the only missing piece left, make sure to partner with a reliable business loan provider as soon as you can. To get this done, it’s best to contact Loansolutions PH to facilitate your application, especially in exploring your options.
But before you even talk to providers, you need to keep in mind the bank’s rationale behind corporate loans. Specifically, these are the six main principles that govern the corporate banking industry:
Once you got all these principles by heart, you won’t have trouble negotiating with corporate lending providers.
Banks Will Let You Borrow Money, if You Don’t Direly Need It
For starters, banks aim to earn from their depositors money. This is their way of keeping themselves going and making their clients happy. So it’s not very attractive to them if you say “I can’t start my business without you.” Instead, give them the impression that you’re already doing great and they’re doing themselves and their depositors a favor by investing their money on you.
Banks Will Believe You, If You Believe in Yourself First
Most banks and private lenders would usually ask for your company’s vision/mission statement, company profile and supply/demand statement. Make sure to prepare these documents and use these to assert your products and services. Show them the sales and marketing strategies you’ve come up to ensure your company’s growth in revenue and size.
A High-Revenue Generating Project is Always Worth The Investment
Show off your projects and illustrate how much revenue these will generate for you. One way to do this is to submit a supply and demand statement along with your financial projections.
Transparency Gets You a Long Way
Prepare and submit your complete financial statements, sales projections and feasibility studies. It also helps to present complete account receivables and payables details. Present your credit history and let your prospect provider know upfront that you have current partnerships with other banks. Let them review these for themselves and see the worth of your venture.
Careful Planning Never Fails
Plan how much to borrow and how long you’re planning to pay it off. Know exactly the type of loan you like to have, the most common of which is the revolving credit, short-term, asset acquisition credit and working capital loan. This will help you negotiate with the provider accordingly.
Think Local
Unless you’re planning to open an online outsourcing company, it’s best to think local. There’s no point of looking towards a Singapore sme loan provider no matter how attractive the terms, especially if you’re planning to borrow from a rural bank. This is a good way to emphasize your potential influence and impact on the local community. Besides, the bank will most likely relate and understand your company better if you’ll be talking about the same location you both operate in – a good starting point to start your partnership on.
Once you got all these principles by heart, you won’t have trouble negotiating with corporate lending providers. These will help you see their point in investing in business and you’ll become more effective in presenting yourself as someone worth investing in.
