3. Research and Presentation

It best to do in-depth research of the market before applying for loan and find out what terms are on offer for loan by various agencies.  Because there must be some option available with cheaper rate and flexible terms elsewhere.  A start-up first impression set the rhythm for the song and can be deciding factor in sanctioning a loan from bank.

The way a start-up present their business thought help inspire banks for business credit and it best to practice presentation before going to a meeting with bank.

4. Know your number

Before official consulting, speak to the bank about what information you need to bring. Ready all things related to business plan, key financial statement for the current year, financial forecast, ratio calculations, and personal financial information of business owner. It’s important to keep all key financial figures ready as these small factors can bring big hurdles in the way of obtaining loan.

5. Take some Precaution

Since 90 percent of the start-up fail in its first year, and have likely risk of defaulting on the advances. The significant issue develops when start-up need to pay much higher, money than it has acquired, so check the monetary detail carefully.

Start-up should be cautious if it finds much cheaper financial option that sound good, find out why it’s cheaper. It’s also good to have consulted a business advisor or accountant before signing anything.

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