BUY BC BUSINESSES Business Buyer's Guide Kootenay Boundary Regions Spring 2015 | Page 11

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10 Tips To Help You Negotiate a Business Loan in 2015
1. Long before you need money, even if you 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!
4. Now you have your financial statements ready, make sure you understand them. These are
your firm’s management accounts - you need to be in control.
5.

Think long and hard about why you want the money and what you will use it for. Lenders will
ask, so be prepared. Bear in mind, it’s a lot easier to get money for equipment and other capital
assets than for staff, or operating costs, for instance.

6. Know exactly how much you need and what 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.
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?

8. Check your personal credit rating - especially 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