To say that finding the right funding is important to the prospects of small businesses would certainly be something of an understatement. It can, in fact, be the crucial factor determining whether or not an SME is able to find the traction it needs to develop towards sustainability. So how can you improve your chances of securing a loan as an SME? Let’s take a look. Be Upfront
The truth is that any unsound projections or massaged figures within a loan application will be spotted in the fullness of time, and assessors are unlikely to be well-disposed towards applicants once these issues are uncovered. So, it is generally far better to simply be honest and upfront from the outset; work towards finding finance from the basis of where your business really is, rather than where you hope it might be.
Be Realistic
Ambition is almost always an admirable trait, and SME bosses tend to be brimming with it as they
look to find the funding that might help them along their way. But, there is an important distinction
between showing ambition and being completely unrealistic about what the potential for a given
enterprise really is. In the context of SME loan applications, the aim should be to demonstrate both ambition and positivity, as well as sound judgement and an ability to assess relevant market information and draw realistic conclusions.
Be Open to Getting Advice
Whether you are applying for a business loan for the first or the 50th time, there is always a good
chance that you could benefit from the advice of someone who is not as close to the project and the
process as you are. Whomever you decide to seek advice from, you should be ready to hear them out and not to dismiss their opinions just because they’re not what you were hoping to hear. The small business loan application process can be tough, and the sooner you learn of any problems you’ve overlooked, the sooner you’ll be able to access the finance you’re after.
Be Open to All Options
Today, more than ever, there are a broad range of finance options open to start-up companies and SMEs in any field. There are specialist lenders and peer-to-peer platforms available that can open up funding options to businesses that have been refused loans by mainstream financial service firms. So it is important for contemporary business bosses to consider all the options available in their search for loans, or for any other form of funding.
Be Persistent
Applying for business loans and seeking out enterprise finance can be a real challenge but, with the right approach and a clear determination, there is no reason to think that you will not find the right deal for your business.
Source:smallbizclub.com