Getting an approval for big business loans will need a thorough preparation from your side. Everything from your presentation to your appearance will create an impact and can sway the bank’s decision to provide you a loan or not. In this post, we detail some simple tips you can follow to increase your chances of being approved for a business loan.
Your presentation needs to be attractive enough that it must make the bank feel that you have what it takes to see your dreams through. But don’t get too bogged down by the ‘look’ aspect of the presentation. You also need to make sure that all facts you provide and the business plan you present is sound, logical, and achievable. The loan approving team should feel that your plan can succeed. If you can pull this off, you are pretty much guaranteed to get the loan.
You must always act like a professional in front of the bank officials. Remember that these are people who routinely approve hundreds of thousands of dollars in big business loans for various ventures. They expect a certain level of professionalism from the people to whom they lend money. So, be sure to wear neat, formal clothes. Speak in an authoritative manner. Avoid using too many words like ‘may be’,‘might be’, etc. while speaking since it will reflect your indecisiveness. Instead, use confident words like ‘will do it’,‘will happen’, and so on.
Use Statistics and Projections
People like statistics. Banks like projections and statistics even more. So, include as many numbers as you can in your presentation. This involves things like projected profits, revenues, sales figures, statistics from similar case studies, and so on. Numbers tend to evoke a sense of trust since they are measurable. So, including statistics that show your project as a guaranteed success will have a deep impact on your chances of being approved for the loan. The officials will be better able to understand the project potential.
Don’t Set Very High Hopes
Never set extremely high hopes during the presentation. The bank officials are very knowledgeable people who know the ins and outs of finance and also about your business niche. They will instantly know when you are bluffing or overestimating your success. And this can actually create a negative impression about you since the officials might think that you do not have a grasp over the reality of business. So, remain truthful and realistic about the success potential of your initiative. It shows huge responsibility if you can show and have 6 months of expenses saved up in reserves to support your business. That will go a long ways to getting approved.
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Consult Your Lawyer
Finally, remember to consult your lawyer before accepting the loan. Certain promises you make to the bank officials, whether during the presentation or otherwise, may be viewed as binding on you. As such, if you fail at achieving the targets you promised, you may have to face legal charges of fraud. To keep yourself safe from this, hire a lawyer and let them create a legal agreement with all the caveats. This should protect you from any charge of fraud.