How do I qualify for a business loan
Written by: brittanybritney
Business loans are important parts in expanding and sustaining businesses .
In this post, we will understand what the main obstacles are in the search for credit, what are the best ways to get to it and what are the care you must have before borrowing money from the bank.
As you know, a new business requires financial investment, but not just that.
If you do not have a good idea on how do I qualify for a business loan, a well structured plan and qualified partners, this money is worth more applied in lower risk investment, such as fixed income.
For those who have all this, but do not have the financial resources, financing and loans for companies are ways to get this project out of the paper .
This credit can serve not only for new businesses, but also for those seeking to expand their operations or overcome difficult business moments.
That is, the loan is an alternative that can help to unlock the journey of the entrepreneur and take the company forward.
The problem is in the search for credit .
If you have already applied for a loan to a bank, you know the size of the headache that is to present all the required collateral.
So how do you offer the necessary collateral, find the best mode of credit for your case and plan well what you will do with the money? This is what we will discover next.
Business Loan: Step by Step
Here are the main steps in the credit application for your company:
1. Plan
Define objectively the purpose of money and the exact amount that will be required.
These two answers should be very clear and from them you will know if asking for a loan or financing is really the best option or if it is not better to wait and save the money you need.
2. Pay attention to your personal finances
You will apply for credit for the investment in your company, but this does not mean that your Individual Taxpayer’s ID ( CPF ) will not be reviewed.
So first make sure that your personal finances are current and that your name is not on the SPC or Serasa.
3. Search for options
Each financial institution has its requirements , constraints, rates, costs, deadlines and limits. This usually varies greatly from bank to bank.
You can look for lines of credit specifically designed for the desired purpose – working capital , equipment purchase or physical space expansion, for example.
4. Evaluate the total effective cost
The interest rate that the bank charges on top of the amount borrowed is not the only cost you will have when asking for money.
Banks also charge administrative fees and, therefore, the benchmark for comparing lines of credit is the Total Effective Cost.
When in doubt about how to calculate it, consult your accountant to help evaluate the best possibilities.
5. Update your business plan
After choosing which bank offers the best conditions, prepare to convince it that your project is feasible and that you will be able to pay the installments.
In addition to the required guarantees, develop a study with market analysis or a business plan that details how the money taken will be applied.
Thus, you will prove that you are a serious businessman and that you know what you are doing.
6. Place the order
Now, simply gather the documentation required by the bank and deliver it, along with the business plan.
After that, wait for the analysis of the financial institution and wait for confirmation of the financing / loan.