Finance-Perso

What Do I Need to Apply For a Business Loan?

0:00 do
0:12 you the questions I frequently get tossed
0:15is Rob what information do I need to give to a bank
0:18in order to get a business loan thats a great question
0:22Im sure if you recently approached the bank you know that they want
0:26much information from you as they can gone are the days where you could just
0:30pick up the phone
0:31and ask the bank for a loan it doesnt work like that anymore so what
0:35information do you need
0:36well let me share some ideas with you the first
0:40information you need is a business plan now you know if youve watched
0:44my other videos on this channel Im a great believer in business plans
0:48especially when youre approaching the bank for a loan
0:50everything that they need to know about your business
0:54is enclosed in a business plan it just makes it so much
0:57easier for them to process your request not written a business plan before
1:02just check out the other videos on this channel or check out my book
1:06long shop get the business finance you you find some tips and ideas
1:10in there as well so first step get that business plan
1:14an expert information the bank needs
1:17is you order to the country annual financial statements
1:20banks love numbers those
1:23account have to be backing up to date its anything more than three months
1:28of to your end the bank Ill probably say come back to me
1:31when youve got that information get onto your account
1:35make sure all your statement a bang up to date
1:38but even thats not good enough because
1:42they gonna be three four five months old but Im you produce the financial
1:45accounts
1:46show the banks gonna want even more up-to-date information
1:49in the former management accounts now in the current economic environment you
1:55as a business owner should be wanting to know whats going on with you
1:59in the business on a monthly or quarterly basis
2:02so Paul information together so that
2:05bang up to date you know exactly what your sales you expenditure
2:09and more importantly your profitability is because banks you
2:14ask oldest brings it back up to date an expert information
2:19well they want to know how much money you owe
2:22and the former what your creditors are how much money is owed
2:26to you your debtors show bring that information as well
2:30your debtors on your creditors the next bit
2:34all thats being backward-looking alway your businesses today
2:38the bank is more interested in where your business is going to be in the
2:41future
2:42financial forecasts coming theyre going to want to see
2:46forecast profit and loss cash flow a balance sheet
2:50maybe the needed to help here Im so you may want to go
2:54launcher Canton take got a big project they wanted to put together
2:58but the banks going to want to see you have the ability
3:01to pay back known or the overdraft you asking for
3:05the next with information is
3:09I think expenditure asset and liability report and what the heck is that
3:13well an individual explain to the bank is lending to use the individual
3:18you in the small business market you were the one will make or break your
3:22business
3:22to the bank wants to know about your personal
3:26financial background so theyre gonna give you a form Im which details on
3:30your income
3:30all your expenditure your assets hikes colleagues after
3:34I knew liabilities your mortgage personal loans
3:38why do they wanna know well if you are under
3:41personal financial pressure individually where you gonna change
3:46you gonna tune to your business to support
3:49so theyre going to want to know what financial pressure
3:52you may or may not be and the last item information need
3:57well the banks gonna pull off the credit report
4:00on you on your business more particularly
4:04you so forewarned is forearmed not look to your credit report recently
4:09get a copy its so easy to get hold of just going to your favorite search
4:13engine
4:13tight credit report and you come up with a number of providers
4:17all which will provide exactly the information the bank a/c
4:21have a look at that report just check out theres nothing detrimental
4:25that will get the bank consent just get all tied up
4:28so ileana a
4:31quick overview all information that the banks gonna need
4:34your business plan accounts manage in the camps
4:38financial forecast and income and expenditure asset-liability report
4:43and then lastly your credit report do all that
4:46put the information together on your gonna substantially
4:50increase your chances getting that
4:53yes

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