What Lenders Want From Businesses
What do business-loan lenders want to see? A business plan that installs confidence. Why? Banks lend money to make money. They earn income on fees and interest. And, they want the money back.
They are looking for a well-thought out plan. What will the business do? Who will own it, manage it? Does the person (or persons) have necessary knowledge and experience to make the business successful? Where will it be?
Be as thorough as possible. Lenders need to know what you are thinking about prospective customers, pricing of the product or service, etc. How will this business make a profit? Will it make enough to pay expenses and also pay back a loan?
Lenders are looking for a plan that makes sense. Something feasible. The narrative needs to agree with the Cash Flow – the words should paint the same picture as the numbers.
Make sure your name and contact information is on the plan. Sounds simple, but many forget.
If a plan is not funded by a lender, please ask why. Lenders can share good advice that may help you remedy a situation.
When you apply for a loan, inquire regarding the length of time the average approval process takes. And, second question: how long does it take to receive loan proceeds after an approval.
By Charlene Finerty, owner www.PlansAndProfits.com
