Augusta
VIP Contributor
A lot of times there might be no other way to fund a business than to borrow especially for a startup. The truth is that banks most times hesitate to fund businesses especially for beginners when they know the rate of failing is usually high. But you can still convince them against all odds to get their approval. So you would need to do the following to stand a better chance of getting the loan
- Start by having a good credit rating, you know that you should have a clean credit score. This will help you to have a better standing when you apply
- Then write a good business plan, you can’t talk about a loan for a business without a business plan. The bank will want to convince self that your business plan will be a success.
- Avoid a business domain that have high level of failure, it doesn’t go well for bank loan requests. You don’t need to go for bank loans to start a gambling or porn business.
- You need to at least show a good level of investment, this simply means you should be able to pay at least 10 -20 % of your loan money. It shows the bank your level of commitment
- Show your repayment source or sources. The bank will be sure you have avenues you would use to pay back your loan
- Demonstrate the possibility that you would be able to run the business well. Let the idea you have be a salable one
- Let them know you would like to complete your repayment before you start taking out your salary. All of this is to convince the bank that you would be selfless with running your business