3 Things You Should Avoid Saying To Small Business Lenders
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residents looking to start a new business. Clients are getting loans of up to $50,000 in 30 days.
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The lender will think differently. Lenders like to know that you have your ducks lined up, you know how much money you need today or forecasting based on something tangible and will have the ability to repay the loan. Asking the lender straight up, will instill doubt into their mind that you havent planned or thought it through and are likely a timewaster or worse you will borrower too much money and will eventually default. I have a great idea! Or I want to buy a business I heard about As an entrepreneur youre always enthusiastic about your business idea, how it will build and grow into something great, however lenders dont go for ideas. Lenders look only at real facts with supporting data or documents. They provide debt, debt that needs to be repaid with a clear understanding of how thats going to happen. Applying to a lender and complaining that no one will give you a go will only result in you finding a potential sympathetic ear with no money. If you dont have revenue or assets to offer then your likely fall back loan option is a personal loan or if you can obtain some forward orders (purchase orders) to show a lender how the money will be repaid before youve started bringing in any real revenue to base a loan on. I cant tell you that right now its confidential Lenders have seen every possible scenario, profit youre making, supplier terms, manufactures terms, supply contracts etc. and if they havent its likely they wont want to lend against it. Not disclosing or saying you cant offer up information to a lender is by far the fastest way to make the lender grumpy. Youve approached them for a loan but you cant tell them all the details?!
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