10 Factors to Consider In Business Loans Application ProcessAbbakin
Getting a small business loan can be so important in growing your new business. However, below are key factors to consider in business loans application.
A lack of equity limits the debt financing available to most startup businesses today.
Lenders generally require some equity cushion or security (collateral) before they will lend to a small business.
Additionally, debt financing requires the ability to service the debt through current interest payments.
This also makes these funds unavailable to grow the business.
Although venture capital provides businesses a financial cushion, however, these equity providers have the last call against the company’s assets.
In view of the usual lack of a current pay requirement, they require a higher rate of return than lenders receive.
How We Help!
The Abbakin Target Savings and Business Loans Project include our In-house Entrepreneurs Empowerment Schemes aim to foster sustainable economic development within our communities.
By investing and supporting sound business ventures though a saving plan that encourage startup individuals, business owners and organizations to finance their initial projects – letting them get by with as little upfront cash as possible.
Abbakin evaluates all lending applications proved to be a “win” for the entrepreneurs.
The following is taken into account when you apply for a loan:
10 Factors to Consider In Business Loans Application Process
- Market potential and future economic viability of the business;
- Local job creation;
- Experience related to the venture;
- Reasonable personal financial investment;
- Ability to repay;
- Adequate security for the business;
- Creation of a business plan; and
- The location of the business (within the Target Customer Area)
- Good organizational structure;
- Business financial statements and tax returns (if applicable)
How to Start Your Loans Application Process
- First, contact our office for initial discussions concerning your application.
- Develop a business plan, including financial projections (how the money will be used).
- Complete the required loan application form and submit with the business plan to our office for analysis.
- The business plan may be relatively simple or very complex depending upon the nature of the business.
- You may be asked to supply additional information, depending upon your business projections.
- Once your application has been received by our finance committee, you will be notified on the status of your Micro-Loan application within three business days.
The Art of Getting the Money
This starts by knowing what the lenders want.
A better way is to simply ask a friend, your business advisor or our professionals who can help you.
To get more details now, send us a mail: firstname.lastname@example.org