Things you must have before applying for a loan

When you intend to get into debt for business financing, you don’t just pop into a financial institution and request for funds. You must first of all put into consideration several things that will act as a basis or rather a guideline to why you need the money and how much you can borrow depending on your capability to repay.

The following are some of the requirements you must have first;

A well-built idea

The best business ideas are those that o­ffer solutions to existing problems. Ensure that your business addresses an actual need in the marketplace.

Have proper registration of your business

You’ll need to have your business’ documents in order to access financial support from lending institutions.

Have a good business plan

Investors and financiers first and foremost look for ideas they can invest in and that promise a good return on their money. Entrepreneurs must convince them that they have an idea of value to consumers. A business plan gives investors the confidence that there’s a solid strategy behind the entrepreneur’s enthusiasm.

Have a skilled team

Most investors are more willing to give their money to a team of professionals rather than to one person. In addition, teams tend to translate into more efficient and accurate in decision making. This and allows multiple opportunities for responsibility.

Prepare a business proposal

A business proposal gives an overview of the entire enterprise in a few pages. It is essential that your proposal is clean and to the point enough to capture the basic details of your business strategy – including the market need for the product or service, your financial projections and your sales and marketing strategy.

Provide your transaction history

Investors are more likely to lend to businesses that have a proven record of making products or providing services that sell. This means records of purchases, supplies, sales and turnover going back as far as possible will help lenders create a credit pro‑ le of the capitalist.