Whether you need money to deal with daily operations, or invest in growing our business, the most common way to get that money, is requesting a loan to a bank or any financial institution.
To request a credit or loan from a bank or financial institution, we must first determine what amount we will apply, and analyze in the first instance if we are able to pay that amount.
Second, we must evaluate the various financial deals that exist, taking into account the loan amount, term and each bid costs (fees and commissions).
At this point we must consider the interest rate indicated banks or financial institutions is often not actually the only cost to pay for the loan, but there are often other costs not mentioned in the first instance, such as maintenance fees.
In evaluating the various financial deals, we must also take into account the bank or financial institution itself, that is, regardless of their reputation, their attention quickly to assess your application and to give us the loan, etc..
Third, once we know the amount, cost, and time, we evaluate whether we will be able to pay the amount to pay for it, we must find the monthly fee to pay (which can give us the same bank or financial institution), and then include that amount in our income and expenditure projections (projection of our cash flow), and thus whether the revenue we generate, we pay these fees.
Fourthly we must find out what the requirements requested by the bank or financial institution we have chosen, it is usual that we ask the following:
* Experience in the market: 6 months to 1 year at least, to demonstrate it is necessary that the company is legal.
* Be eligible for credit, i.e. not be classified as a paying customer or deficient in meeting its obligations.
* Have borrowing capacity.
* Historical financial statements.
* Projected financial statements (forecasts or projections, especially cash flow projections).
* Declaration of income tax.
* Trade references.
* Ratio of 3 major customers (past billings).
* List of major suppliers.
* Commercial guarantees.
* Business plan (for investment, for example, to expand the business): This requirement can prove that one has full knowledge on what is going to invest, can also assess whether the business is profitable, and if one be able to repay the loan with the fruit business.
* Formal presentation.
Several of these requirements will vary according to the bank or financial institution, and according to the amount requested.
For example, if a bank or financial institution specialized in microfinance or the requirements may be more accessible, for example, can you ask for only 6 months experience in the market?
Even in some cases, the staff of such entities, not expected, but goes directly into our business to collect the information himself.
Even these institutions do not ask for collateral or guarantees up to certain amounts, just call or submit a draft business plan, showing income, show the movement of business, etc.
Following the steps, in fifth place, we must prepare to answer the questions we do about our company, ready to say why we need the money, provide details of the investment, demonstrate ROI, and prove that we are able to pay the debt.
And finally, it shall wait for the bank or financial institution to assess and measure the risk of extending credit and, accordingly, decide whether to approve the loan.