Читать книгу Start & Run an Event-Planning Business - Mardi Foster-Walker - Страница 46

The most logical approach to securing a loan from a financial institution is to select one where you already have a history of responsible financial dealings and an already established relationship with the manager or loans officer.

Be well prepared when you approach any potential lender. Have a clear, concise, typed, well-presented business plan. Present the lender with your sales and cash flow projections, and explain precisely how much money you want to borrow and why. Be very specific and show how your business can be expected to generate the cash to repay the loan.

Be prepared to show statements of your personal net worth and what other financial resources you have available to start up your business. If you want to win the confidence of the bank manager or loans officer, be prepared to answer all questions truthfully and candidly.

It is unlikely that you will be able to secure a bank loan unless you have some tangible assets as security. If you own a home and are willing to mortgage it, or mortgage it further, a lender is more likely to make funds available.

When you borrow money for your new business, you are personally liable to pay it back. Even if your company is incorporated, the lender will require a personal guarantee from you. If a bank or credit union agrees to grant you a loan, it will usually require you to take out property and liability insurance on your business and a life insurance policy on yourself, naming the bank as beneficiary.

A financial institution may come up with a variety of reasons for turning down your request for a loan. If you do not succeed at the first lender you try, go to others. Ask why you are being turned down for financing and make adjustments accordingly. Perhaps you need to revamp your business plan or start your business on a smaller scale. You may also want to consider taking out a personal loan. This is sometimes the easiest method for many small-business entrepreneurs to secure financing, especially when the amount needed for start-up is small. To receive a personal loan, you will still need to have collateral and satisfy the bank of your ability to pay. However, you will not need to provide the bank with a business plan or to go into the details of your proposed venture.