Finally after so many hesitations, you have decided to apply for a loan from the bank to start your business, or to launch yourself into some new project. And here are the first doubts: what should I do? How many types of financing are there? How can I understand that this is a positive operation for my company?
If it is true that obtaining a loan from the bank is a procedure that scares many entrepreneurs, it is also true that it is often essential to be able to start the business or make it more competitive on the market. So stop asking yourself a thousand questions and follow our advice . We have gathered them over many years of experience alongside our customers entrepreneurs in your own situation. Here’s what you need to do!
Useful tips for obtaining a loan
In recent years we have noticed that it has become increasingly difficult to obtain financing , especially for small organizations. On the one hand, banks are increasingly reluctant to lend to businesses with little profit, on the other hand small businesses are afraid of finding themselves managing a loan beyond their means.
But beyond the fears, you’ve already decided that applying for funding is the best solution for your company. Here are the tips we give to our entrepreneurs:
Make yourself reliable and show that you have clear ideas . Put yourself in the bank’s shoes , would you ever give a loan to someone who transmits insecurity? This is necessary especially in the case of small businesses, or young startups , or all those cases that are too risky for the bank. Are you wondering how to do it? To begin with, prepare an impeccable business plan . Organize the activities that, in the long term, will bring great profits to your company. After all, this is what interests the bank.
Build your web reputation . In recent years we have noticed that more and more banks are searching online to study the company profile . Being active on the web with a site or a corporate page in social media or even a corporate app can help you communicate your strong, competitive and open to new innovative reality to the banking institution.
Motivate your request . What do you need funding for ? Investments, need for liquidity , projects? Specify the reason why you are requesting the loan, even better if accompanied by the documentation that can give stable and motivated basis to your request.
Reorder documents . A solution to prove your reliability is to present well-organized documents. The precision with which you will show them to the bank will be the best presentation: budgets , tax returns, invoices, everything must be well ordered!
Offer guarantees . Virtually all banks require them. This is an added value that could be useful if your business project is not enough to convince the bank to grant you the loan. Your assets, mortgages on real estate, external subjects such as the State and consortium bodies, are pillars that show the bank that you have the opportunity to repay the loan .
At this point we want to give you some tips to better understand the terminology used by the banks . The technical jargon of financing , if this can be defined.
Technical dictionary: how to understand the language of your bank
Sometimes the technical language used by banks makes things more complex than they are. In reality it is not necessary to enter too much into technicalities in order to be able to communicate with them. In any case, knowing the meaning of some terms will certainly help you.
Here are the terms most used by banks:
Financing: the amount of money that the bank lends to the entrepreneur. This must be returned in a specific period of time, with the addition of interest accrued over time.
Fido: the sum of money that the bank grants to the entrepreneur, after having activated a current account, higher than that available to the account. This procedure is recommended especially in cases of temporary imbalances, between income and expenses, in the management of the fund .
Credit for advance invoices : the company that has a current account can ask the bank for a sum of money, of which the company can dispose immediately, as an advance of the credits used by the customers.
Mortgage loan : financing granted against the guarantee of a property, in particular a request to cover the costs of buying or renovating the building where the company carries out its work.