BUY BC BUSINESSES Business Buyer's Guide Cariboo ǀ Chilcotin ǀ Northern Regions Summer 2015 | Page 3
10 Tips To Help You Negotiate a Business Loan in 2015
Will your business need a loan in 2015? Are
you considering expansion, do you need new
equipment, are you moving into new markets?
Here are 10 tips to help you secure that much
needed loan.
8. Check your personal credit rating - especially
1. Long before you need money, even if you
9. Ensure you have some skin (as in
believe you will never need a loan, it’s a
good idea to build a solid relationship with
your bank, or other potential sources of
funding. Think about it - would you be more
likely to lend money to someone you know,
or a complete stranger?
2. First things first, write a business plan or
update your current one. Lenders like to
know you have a plan. Crazy eh?
3. Pull together your financials; the key figures
lenders want to see include an income
statement, balance sheet and most
importantly a cash flow spreadsheet.
They’re not stupid, they want proof you will
be able to pay them back!
6.
money or assets) in the game. No lender
wants to take all the risk. Do you have any
assets you could use as collateral? For
instance, do you own a boat, a Harley, a
classic car? Could you use these to make
the lender feel more secure?
10. Finally, put yourself in your lender’s shoes.
They have a responsibility to their
stakeholders, and of course bosses, to lend
responsibly. Ask yourself, would you be
prepared to risk betting your house on your
business being able to pay the loan back?
If it was all your risk, would you lend the
money to your business? Be honest!
At the end of the day, it will come down to how
well prepared you are and whether the person
ready, make sure you understand them.
you are dealing with believes in you, your
These are your firm’s management
product, and your company. Remember it’s a
accounts - you need to be in control.
person making the final decision, or at least
Think long and hard about why you want the making the recommendation to someone higher
money and what you will use it for. Lenders up the food chain. The better relationship you
will ask, so be prepared. Bear in mind, it’s a have with that person the more likely you will
lot easier to get money for equipment and
get a positive result. The key is to demonstrate
other capital assets than for staff, or
you and your team has the work ethic,
operating costs, for instance.
commitment, skills, knowledge and experience
Know exactly how much you need and what to succeed.
4. Now you have your financial
5.
if you are a proprietorship. If it’s not so
good, things could get sticky when you
meet a prospective lender. Basically get
your own financial house in order, not just
that of your business.
statements
it will be spent on. Lenders want to see the
money is going to be spent wisely on things
that will improve your bottom line.
by Mike Wicks, President, Blue Beetle Creative Media
7. Consider - do you need long-term, or
short-term cash? Are you looking for a
line-of-credit, or a loan which you will pay
back at a set amount every month over
several years?
Www.bbcreativemedia.com