Business Loans Tips & Tricks

Sell yourself
Make sure you present yourself and your information in a professional manner. Consider wearing a suit to your meeting. Be punctual.

Prepare for the interview
Do you have all the information the lender wants to properly assess the application? Find out exactly what information is required and what forms need to be filled out so that you don't waste valuable time for either yourself or your prospective lender. Have your financial information organised in a way that makes it easy to review.

Proof of Identity
If you are not an existing customer you may need to supply proof of identity as per requirements laid out within the Financial Transactions Reports Act (1988).

Proof of assets
How your business is structured? The lender may want to satisfy itself that the proper authority has been given to office bearers to apply for finance:

* Certificates of Incorporation and Registration
* Trust deeds etc.


A company seal is required to complete mortgage registration documents on behalf of a company.

Be realistic in your forecasts
Be realistic about your predictions for revenue and expenses. Ensure that you can make a good case to substantiate your forecasts. If you are unsure about making budget forecasts, consult your accountant.

Consider fees
Commercial loans attract a wide range of fees. This is because of the more complex structure of the loan compared to personal or home loans. Line fees, limit fees, over-limit fees, overdraft fees and temporary overdraft fees may sometimes be quoted as a percentage of the total loan amount rather than an exact dollar amount. These should always be spelled out in your loan contract.

Build your case
The more information you can supply the better. Lenders want to understand not only you but also your business. Most lenders will want to see evidence of consistent financial performance in your business activities. They will want to see:

* balance sheets
* tax returns
* cash-flow budgets


Think hard about other documentary evidence you can gather that will convince lenders you are a good risk.