Licensed Moneylender: 7 Keys to Successful Business Loan Application
Have you experienced applying for a business loan or to a licensed moneylender? Here we give you seven practical tips on how to get that capital you need to boost your business.
Starting and maintaining a business requires additional financial support to be successful. Whether you are just beginning to buy facilities, rent a space or expand to more branches, a licensed moneylender is one of the options for a business resource. Money lenders are groups or individuals who lend money with a certain amount of interest.
7 Steps to Take for Business Loan Application to Licensed Moneylender
Though money lenders are more lenient when it comes to approving business loans than banks, they still impose a standard process for loan approval. So to get a sure yes for fast cash loans, simply follow these steps before and during your application procedure:
1. Get a real status of your business’s capital or financial situation.
Before moving forward in getting a loan, make sure you know where you are coming from. You need to check your current financial status before getting into debt. If you have enough knowledge and skills to do it, you can do it on your own but it is still encouraged that you leave to professional; a bookkeeper or accountant perhaps.
You need to review your financial records to determine the money that you need and money you will get after the loan. This way you can make an analysis and projection of your income and know whether it will be enough to pay your loan. We recommend making a financial development plan (long-term) which will save you from sinking into high interests of your loan.
2. Check your credit score
One of the major deciding factors of licensed money lenders is your business credit score. Your business credit score will determine the amount of money you can borrow, how high the interests will be, terms of repayment, other fees, and most of all, the final approval of your loan.
So before you go to the nearest money lenders, get an updated copy of your credit score from credit agencies. It may take some of your time but it will surely benefit your loan application more.
3. Make a good business design
If you fail to plan, you plan to fail. You cannot just go to a lender and expect to get your money after submitting financial reports and other documents. You need to propose a reliable, realistic, and feasible business plan. The plan should show how you are going to pay your loan. It includes the amount of income, expenses and operational continuity.
You should also show in the plan your credentials when it comes to paying loans. A great business plan reveals your sincerity and desire to achieve your goals.
4. Determine where and how you will use the money from the loan
Licensed moneylenders will ask you the purpose of your loan so you need to be sure and clear about it yourself. Be specific and intentional so you can convince the money lenders that what you are into is a good investment. Once they knew the loan would also benefit them, you can get easy approval.
5. Research and apply for the right type of business loan
There are more than 10 types of business loans you can choose from. So you have to study them and ensure it matches your business needs and goals. For example, a term loan is best business expansion as the expansion itself can pay for the loan. Look for lenders who can offer a wide range of financial loan options.
6. Choose the right licensed moneylender
Be careful to fall for illegal money lenders who offer fast loan transactions but are sharks when it comes to putting high-interest rates. They often prey on needy or desperate business owners and lure them to getting loans without the standard process. Some of them may even use violence to get their money back. Always check reviews on licensed money lenders directory such as https://www.moneylenderreview.com/ before getting a loan from them.
7. Read and understand before accepting loan terms
We know for a fact no one really reads terms of the agreement, we just go straight at the bottom and click agree and accept. But it is definitely a NO when it comes to loan application; because we are talking about a huge amount of money, reputation, and even going to jail here. Go through all of the paragraphs one by one specifically the duration, interest rate, variables, penalties and conditions if you fail to pay.
Most of all, do not hesitate to ask questions if there is anything that is not clear to you. Clarify these with the money lender before signing the contract.
Approval from a licensed moneylender is the key to your business’s continuity, expansion or survival. But it should not be a blink of an eye decision because you need to think through it. Determine your capacity, your goals, and the right lender for a successful loan application.