If you intend to borrow money in a bank, it is important that you prepare. Banks are not lending venture. Banks want to be 100%, or better still 150% confident that you will pay back what you borrowed and that they are making money at the same time.
The bank will want to have good collateral, eg. As mortgage on your property, securities, bond. They will also evaluate you as a person and look very closely at your business. Start by going to your own bank, but do not settle for that. Examine many banks’ terms and conditions before you decide. It’s easy to feel small in contacts with the bank but hold your head high and was cocky. Remember, they do not lend money to be kind to you. They do it to make money and they will require you to pay on time, whether your business is doing well or not.
Questions they might ask
What if …
- You do not sell as much as you think?
- You get sick?
- Customers do not pay?
- The providers do not give any credit?
- A major customer change supplier?
If you get questions like this you have come across a good bank that will help you in your business. Unfortunately, you can not expect that Bank staff are so dedicated. Often, they are like most people are quite afraid of making mistakes. They do most of templates and your job is to not miss a single detail that might make them anxious when they are in a meeting with the data they have received from you.
At the bank meeting
- With the number of references they can call.
- With a clear business plan that you can inside and out.
- With a marketing plan that you can inside and out.
- With an investment plan.
- With a starting budget .
- With clear reasons why they should believe that just you will get through this.
- With the cooperation plans with others.
- With collateral for the loan.
- With future plans for the coming year.
- Great, clean and neat.
There are two types of loans you can get at a bank
Investment Loans
Money for machinery and equipment.
Operating loans
Credit facility used to support your current business. A certain amount, for example. 100 000 is always available on your account for the higher costs. You pay for the opportunity to use the money, and if you use them you will pay interest on the amount you use.
Guides from Norgelån.com
Atnorgelån.com you will find information and guidance for your loan - for free. They provide information about how the loans work and gathered the International and Norwegian banks’ offers and conditions. That could be a good starting point for those who want to learn more about the loans, compare loans and get a good overview.