If you’re an entrepreneur, you understand the importance of seizing opportunities and taking chances. Whether you approach your banker or a private commercial lender like Kal-Mor Mortgages & Investments for a small business loan, you’ll have a better shot at getting it approved when you follow these tips.
Tips to getting a business loan approved
1. Work on your financial image.
When your business bank account shows you have a solid balance, and that you’re rarely in overdraft or bouncing cheques, lenders will see you as someone who manages money well. Appearing to be a low-risk borrower whose business is healthy will increase your chances of getting your small business loan approved.
2. Network and market yourself.
If you’re well-known in the business community, or you at least have a few solid contacts, your commercial lender will be more confident about doing business with you. If you’re new to the community or new to owning a business, you can build your contacts by joining the local chamber, men’s or women’s clubs, or even the local golf course.
3. Demonstrate your business is worthy.
You’ll impress a commercial lender with positive financial statements, but those are in the past. If you really want to get your small business loan approved, show proof of future orders and projections so it’s clear your business will continue to be healthy for a few years.
4. Build and use your cash.
In the industry, we call them ‘liquid assets.’ You know it as cash. Make sure your business loan application includes all of your liquid assets. This is a major determining factor in business loans because it shows you manage money well, that you’ll make your payments, and that you’re invested in your business too because you’re willing to use some of that money for your project, renovation or expansion.
If you’re ready to grow your business, apply for a Vernon business loan with the commercial lending experts at Kal-Mor Mortgages and Investments doing business as OneCallMortgage.ca. Our team offers expertise, advice and established investors who can help your business succeed. Now serving Penticton, Kelowna, Vernon, Kamloops and Salmon Arm. 1-800-567-5511