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How to Obtain a Business Bank Loan

Lending might not be as frivolous as it used to be, but the banks are still keen to lend money to businesses that they see as a safe bet. As such, the difficulty is not actually finding a bank/investor that is willing to lend, but proving that your fledgling business can gain enough profit to pay back the loan in the desired timeframe.
Proving that you’re a safe bet is much easier said than done however, especially if your business is an unproven start up. This is where you need to put the work and the effort in. Before you work on your pitch, you need to work on your business; you can’t flog a dead horse.
It is very important to be realistic, and to think carefully about the motivation behind applying for a business loan. Is your company at a stage where it is truly ready for investment? If the money arrived tomorrow, do you have the necessary measures in place to get going? It is very important to understand exactly how the money will be used.
There is plenty of variety in choosing who to apply for a loan with. High street banks are the most obvious option, though there are plenty of specialist lenders and brokers who offer bespoke solutions to start-ups. Research each provider and what these different providers have to offer – the more informed you are, the better decisions you will be able to make, and the better impression you will make with the lender.
The Plan and the Pitch
Business loan applications revolve around the business plan, and the pitch that you put to the lender. These are both critical.
Hovering around the 20-page mark, business plans are not set in stone, but there are a number of things that should always be included. These include a main summary and an introductory business description. The introduction is your chance to impress the reader. Most lenders won’t read past the main summary if it does not spark their interest. You need to work on your business plan until it is perfect! A good business plan is a quantitative business plan.
In the business loan pitch, you need to make clear how much money you need, and how it will be used by the business. It is very important to demonstrate exactly how the business will benefit with the money. For assistance with your financing needs please consult with your interim CFO