FinancialDigest

Things You Should Not Do To Get a Business Loan

If you are a business owner you certainly have experienced the ups and downs of a volatile economy and the pressures of fulfilling cash flow needs. Many times a sole proprietor ends up venturing down the financing path of researching the probabilities of getting a loan, and which financial institutions and alternative lenders to go to first. 

You may or may not be qualified for a business loan and that’s the reality. But instead of scratching your head wondering why nobody loves you, get out there and do your homework. There are quite a few articles about what to do in order to enhance your chances of attaining a business loan. Here are 18 things to NOT do:

DON’T  :

1 : Come to the table unprepared – Know your financials, have a documented business plan, take time to accurately depict your cash flow projections, develop a strategy that mitigates poor company performance. Get it done before you arrive to your loan meeting, just like this happy guy:



2 : Overextend your credit lines – Your debt, or payable, are part of your credit check and a long list of debt will surely look bad and hinder your possibilities of getting a loan. Think about it, who in their right mind would give you more money after seeing how much you owe?

3 : Have an unfocused business need – If you are strapped for cash, prove it. You can’t get a loan with a reason like, “Can you help a brother out? You know, because I NEED it.”

4 : Forget to pay your bills – Depending on the company you owe money to, unpaid or late payments may lead to demerits on your credit report within the credit bureaus. Be smart, pay your bills. Or be stupid, broke and unable to get a loan.

5 : Apply over and over again. If you get declined more than twice, then it’s time to look into crowdfunding or something else. Take the hint.

6: Lie – Don’t lie on your application or in your loan meeting about things like income and outstanding debt. They are checking your data and will know you are falsifying the document. That is grounds for an immediate refusal, as well as a custom fit dunce cap.

7 : Ask where the VIP room is – Don’t act like a hotshot. A major part of the process is how you conduct yourself. They are judging your behavior, and your personality will be a factor that will give them valuable details about whether or not you are trustworthy. Take off the shades and put your collar down.

8 : Keep calling for a status update – That’s annoying and nobody likes a pest. They will let you know as soon as possible if you are approved, and traditional loans take time to get approval. 

9 : Insult your loan broker – Stay away from bad jokes about physical appearances, racial or ethnic slurs, profanity and anger ridden rages with a political undertone. Unlike in the movies, it will actually hurt your chances.

10 : Look smart and business-like – Don’t walk into your prospective lender’s office looking untidy and like a stressed hustler. Put on one of your best clothes and be clean externally and internally .Your appearance matters.No mouth or body  odour please!. 

11 : Brag about previous loans you never paid back  – Your bank manager would absolutely detest that.

12 : Fake a business – Don’t make up information and fake your way through a meeting because it won’t work. And you will look like a moron.

13 : Falsify your identity – You aren’t going to walk into a bank meeting claiming to be Paul Mccartney’s publicist and get away with it, regardless of how good looking you are.

14 : Be late to an appointment – Want to make a good impression? Don’t be late to a meeting where the other party is considering lending you money. Your timeliness is surely a representation of your person, and starting off on the wrong foot will surely shorten your stride.

15 : Ask the bank manager out on a date because you need to “spend some of the new cash you are going to get” – She or he may be beautiful and in charge of the decision of whether or not you get a loan, but don’t embarrass yourself.

16 : Break down and have a panic attack in the middle of a loan meeting – While anxiety is the trend these days, you don’t want to freak out and start sobbing about your childhood while fumbling around with your Zoloft. Take your meds before you get to the bank.

17:Pretend or act to be rich and famous – You are applying for a business loan my friend. It’s obvious you aren’t rolling in the cash,except you are Dangote and the likes!

18.Be without a business card. A business card is a sign of business confidence and seriousness,have it and flaunt it at your prospective lender!

Adhering to these tips, could lead you to being a successful loan applicant.