Your newly-minted business is gradually getting on its feet and begins to develop, the first incomes appear. But, oddly enough, these incomes are disproportionately small compared to the indicators that you put into the business plan. And you understand that working capital is required. Familiar situation? Probably every novice entrepreneur was faced with the need to get a loan to develop his business. How to do it right?
Instructions
Step 1
Assess your need for funds. Before applying for a loan from a bank, you need to know exactly how much and for how long you will need. In addition, determine the maximum interest rate that you can afford, as well as the type of collateral that the lender is able to provide if necessary.
Step 2
Do a little market research and make a list of lending institutions that provide loans for business development in your area. Compare the interest rates on the loan, the minimum and maximum loan terms, the required collateral. Carefully study the sample of the future contract, so that later you do not experience unpleasant surprises when circumstances arise that you did not take into account due to inattention.
Step 3
Assess the potential likelihood that the bank will not refuse you a loan. The paradox of Russian bank lending is that funds are allocated for the development of an already established enterprise that brings a stable income with a life span of one to two years. For the bank, account turnover will also matter; if the turnover is low, your application may not even be considered.
Step 4
Based on these requirements, from the very beginning of doing business, do not try to minimize business income in order to optimize tax deductions. Declare all income for the first and subsequent years so that the potential lender can objectively assess the real volume and success of your business.
Step 5
If your company operates under a simplified taxation system, keep a clear and systematic record of both income and expenses. If you carelessly manage the expense side, this can deprive you of the opportunity to receive loans, since the bank definitely needs to know the whole picture of the state of affairs in your company.
Step 6
When requesting a certain amount, make it clear to the bank its purpose and maximum size. No bank will lend to vague goals. If the bank, for some reason, offers you to take out a loan for an amount that exceeds your real need for borrowed funds, treat such an offer as discreetly as possible. Focus on the planned indicators of the business and do not go into debt for the amount that the business is unable to work out. By the way, banks are sympathetic to borrowers who adequately assess their needs for funds.
Step 7
Having decided on all the points of lending, collect the full package of required documents and apply to the bank.
