3 Tips That Will Ensure Your Business Loan Approved
So you have a good credit score... your business traction is good... cashflow is good... basically you are like many other businesses out there, doing consistently well.
Then you needed the assistance of a bank facility in the form of monetary loan. Like a good applicant, you fill out the applications and you submit all the required documents. You had your business plan properly laid out for the purpose of the loan.
But you got REJECTED. Despite the fact that you have quite a good record not just your credit but your business traction. Apparently, your quite good isn't good enough for them.
Hi... My name is Anthony Chew.. I'll introduce myself later.. but for now, I want you to have a look at two short stories below.
Mr. Tan [Hardware Wholesaler]
So, we needed some fund for a bigger project that we are receiving. We had applied from two banks and they're both rejected for different reasons - cash flow limitation and weak business purpose. We decided to meet Anthony, whom was recommended by one of our business associates. Not only we got our loan application approved but had negotiated to a higher amount than we initially asked for. Thank you Anthony. Who knows how many times we have to go back and forth to get our financial aide without your help.
Mr. & Mrs Ong [Entrepreneurs]
It was so urgent that we needed the cash! Finally my wife and I decided, enough is enough, after getting rejected by 3 banks! We need someone else to help us and we found Anthony. We realize having all the necessary documents, having good credit score, and good business traction is not really enough. But anyway, thanks to Anthony, we managed to get the facility approved. Wife and I would highly recommend his service.
The two stories above are not intended to promote me. :P
But they help me to introduce to you, 3 things nobody ever told you about when it comes to getting bank loans, maybe not just in Malaysia but everywhere else. [Not sure why they never mention these.]
These are the 3 untold reasons that may affect your loan application.
Banks are businesses too.
Right documents and documenting right are two different things.
Quota.
Banks are businesses too...
While almost all banks welcome anybody to open up a saving or current account, it is easy to misunderstand that they are willing to do business with "everyone".
By doing business, we really mean loans or "credit facility". Banks, like any other businesses, have their preferred ideal customers. Some banks do not prefer to lend out their facility to certain industry while other banks would do it willingly.
The first key here is to find out which bank would prefer the type of business category or industry you are in.
Right Document and Documenting Right..
Having all the required documents and presenting your documents to the bank are quite fairly different. From my years of experience, two businesses of the same industry and the same level of business reactions, presenting the same number of documents and the same record of all else turns out one gets the loan approved and the other not.
This has to do with your proposal. How can you present your purpose the way that banks want to see it is imperial rather than just talking and showing your records.
Have someone experienced to help you put together and documenting correctly before submitting to the bank.
Right Timing...
This point is somewhat related to the second point, "documenting right" but somehow I still want to mention this because each bank has their own annual quota. Even though that quota may be increased but mostly if there is nothing exceptionally interesting, they won't.
The key here is to find out when would be the best time to apply for the loan you wanted from the banks.
Just to summarize...
Here are 3 things you need to find out that will almost always guarantee your success.
Know which banks to approach based on your industry or the nature of your business. Some banks are quite visible on their target customers while many aren't. If in doubt, ask a consultant.
Hire someone experienced in banking to prepare all your documents and your business plan lay out. Only they know how to say what the banks want to hear.
Talk to the bankers if it is the right time to apply for the loan you required.
For almost 2 decades I've worked in the banking industry, I've seen so many mistakes businesses made when applying for loans with the banks.
These mistakes are avoidable if only they know - which bank they should approach, how to prepare their documents and write a convincing business plan to strengthen their purpose, and when would be the best time to apply for the much-needed loan.
“Hi. If you are interested or really serious about getting a loan, I’d love to get on the phone and talk to you for just 30 minutes. If you are open for discussion, just click the let's talk button below that directly connects to my calendar. Please book a time that fits your schedule.”
