5 ways to make your business a better candidate for financing

first_imgAccording to Business Insider, 82% of start-up businesses close down due to a lack of cash flow. Entrepreneurs who want to avoid being a part of that statistic need to have a plan in place for obtaining financing to ensure that they have enough capital to back their idea up. Even if your company is financially healthy, small businesses will typically need to seek additional funding to take advantage of growth opportunities, such as acquiring another business or expanding a product or service line. Bottom line, financing is always crucial. When it comes to small businesses, banks are more hesitant to lend to them because they typically haven’t been in business long enough to build a strong credit history and stable cash flow. Many entrepreneurs turn to alternative lenders and credit unions for help because they tend to be much more lenient when it comes to credit requirements. However, even with these lenders, there’s still no guarantee that you’ll be approved for a loan. Fortunately, if you’re an entrepreneur or small business owner, there are some things you can do to improve your chances of business loan approval and make yourself a better candidate to score some great deals when applying for financing. Here are five ways to do it:Build Your Business’ Credit ScoreOne of the first things credit unions and other lenders will look at when evaluating a loan applicant, is the applicant’s credit score. Credit scores range from 350 to 850. The larger the number, the better your credit standing. If you want to qualify for loans with generous terms, a credit score of 670 and above is considered good. The best way to build your credit score is to pay your bills on time. This may seem like a no brainer, but when you’re juggling multiple payments a month on top of all your other day-to-day responsibilities as a business owner, it’s not uncommon for payments to slip through the cracks. The best way to avoid this is to set up an automated payment system to pay your vendors and suppliers. This will allow you to schedule your reoccurring payments so they are automatically made on the dates you set them for. You won’t even have to think about it, and it will prevent you from missing payments which can hurt your credit standing. Be Clear on How You’ll Use the MoneyWhen applying for financing, be sure to clearly state how you plan to use the money you’ll be borrowing. This includes the how but also the why. Why will this money help to benefit your business? Let’s say you’re seeking a loan to purchase a delivery vehicle. Explain to lenders why this vehicle will benefit the overall business operations and improve your bottom line. Painting a clear picture of how you’ll utilize the financial resource will help the lenders determine whether or not it’s a worthy reason to grant you the loan. If you’re giving them vague and generalized answers, your chances of approval will surely decline. Do Your HomeworkWhen it comes to applying for loans, it’s best to be proactive. If there’s a finance company you’re interested in approaching, learn what their criteria is to qualify for a business loan before you apply. See if they have a minimum credit score or annual revenue that they require. If your company doesn’t meet the criteria, you may have to post pone your application until it does, or find a different financing company. If you do meet the criteria, the next step is to make a list of the financing company’s requirements for documentation. It’s best to have all your paperwork finalized before you begin your application process so that when you apply, everything is as organized and streamlined as possible. In general, lenders require applicants to submit the following:Balance sheetsPersonal and business tax ReturnsValid IDsPersonal and business bank statementsBusiness licenseBusiness plan Articles of incorporationAsk around to see if the financing company you hope to work with asks for any other documents in addition to these general requirements as you’ll want to prepare those as well. For instance, a business lease or a copy of the collateral’s title. It’s essential to provide all requirements on time as it shows lenders that you’re prepared and responsible, which increases your chances of business loan approval. Be Ready to Offer Collateral or Personal GuaranteesOne of the sure-fire ways to dramatically improve your chances of business loan approval is to present collateral. Pledging assets can come in handy, especially if your business isn’t in good credit standing. This provides additional security for the lenders because it gives them something they can use to recover the money you owed if you default on payments. Furthermore, presenting collateral improves your chances of be approved for a loan with better terms and lower interest rates.The most common types of collateral businesses use include:EquipmentInvoicesInventoryPurchase OrdersReal estateIf you don’t have any collateral to present, some lenders may accept a personal guarantee. A personal guarantee is a legal promise that the individual applying for the loan will repay the loan credited to them using their own personal assets if their business cannot afford to do so. A personal guarantee is a good alternative to collateral. If you do go this route, the lenders will evaluate your credit history so you’ll need to have a good credit score (670 or higher). Apply EarlyLoans can take weeks to months to be approved, especially if you’re applying for an SBA loan. The loan facility has to conduct due diligence and examine your financial records before considering your loan application’s approval. Generally, the entire process takes anywhere from 30 to 60 days. If you’re planning on business expansion within the year, it’s better to start your loan application early. This way, you’ll have the resources you need by the time you’re ready to move forward with your plans. Final ThoughtsFinancing is a vital ingredient to the success of businesses. It’s worth noting that many start-ups have their loan applications denied the first time they apply. If his happens to you, don’t stop after one failed attempt. In fact, take that rejection as an opportunity to understand why you were denied so you can work to improve your odds for being approved in the future. Use the tips outlined in this article to make your business a better candidate the next time around. 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Dane Panes Dane Panes started freelance writing in 2017. Since then, she has covered topics relating to health, entrepreneurship, and marketing strategies. She now works as a full-time content writer for SMB … Web: https://www.smbcompass.com Detailslast_img read more

Osimhen gets N39b price tag

first_imgRelatedPosts Nigeria dying under Buhari’s jackboot, by Tunde Odesola Napoli Coach: Osimhen young lad with old brain EPL: Son fires four past Southampton Tottenham and Liverpool have both been told to pay Lille in excess of £90 million (N39 billion) if they want to sign striker Victor Osimhen during the summer transfer window, with Jose Mourinho and Jurgen Klopp both looking to improve their attacking line. Tottenham and Liverpool have both been linked with moves for the Lille forward, after the 21-year-old’s excellent start to life in Ligue 1. The French club is reluctant to sell their prized asset and have put a massive €100 million (£94 million) price tag on the striker. Spurs, Liverpool and Chelsea are all tracking the youngster ahead of the January transfer window. But they were all subsequently priced out of a move for the Nigeria international, with Real Madrid and Barcelona also interested in the forward. Lille managed to sell Nicolas Pepe to Arsenal for £72 million last summer, and are now well-aware that Premier League clubs are willing to spend big. In light of that transfer, Lille is now demanding £94 million for Osimhen, and expect the forward to be the club’s most expensive ever departure, according to Le10Sport. The Ligue 1 club first received interest from rival clubs about Osimhen eight months ago, which is shortly after they signed him. It’s still not clear whether any club would be willing to part with such a large amount of money for a young forward, however. Osimhen cost just £11 million in August, when Lille signed him from Belgian side Charleroi. His value has since skyrocketed after impressing in Ligue 1. The striker signed a five-year deal at the club in August. Osimhen has made 27 league appearances for Lille this season, scoring 13 goals and providing five assists. He was also extensively used in this season’s Champions League group stages. The striker scored Lille’s only goal in their 2-1 defeat at home to Chelsea in October. Tottenham have been looking for a new striker for a number of years, but have been held back by the success of Harry Kane. It’s difficult to find a back-up striker that would accept not playing often, with the manager’s preference always being Kane. But whenever the England international is injured, Spurs are caught short in attack. That was very much the case this season, with Kane missing two months of action, and counting. Tottenham subsequently picked up injuries to Son Heung-min, Steven Bergwijn and Moussa Sissoko.Tags: Jose MourinhoJurgen KloppLille FCliverpool fcNigeriaTottenham HotspurtransferVictor Osimhenlast_img read more

Osimhen: It’s Disrespectful Comparing Me with Ighalo

first_imgVictor Osimhen Lille striker Victor Osimhen who was Man of the Match of yesterday’s AFCON 2021 qualifier between Lesotho and Nigeria in Maseru, has insisted it is wrong to begin to compare him with 2019 Africa Cup of Nations Golden Boot winner Odion Ighalo.The former Nigeria U17 international, scored two goals and assisted in the other goals as Nigeria cruised to victory in the southern African nation.Osimhen inherited the Super Eagles number nine jersey from Ighalo after the former Watford man called time on his international career in July 2019. While admitting that he’s still learning the trade, Osimhen said it was disrespectful for such comparison.”There is no comparison between me and Ighalo, what he has done for the national team is far from what anybody can compare me and him with.”He is a legend like everyone of us are saying, I spoke to him about it and he gave me some candid advice which has been helping me, not just in the national team and also in my club,” Osimhen told allnigeriasoccer.com’s Victor Modo via YouTube.”For people to compare me and Ighalo, for me it is disrespectful to do such. He’s a great player of course, we know what he’s done with the pressure coming from left and right, he still kept his cool.”It’s disrespectful to compare me and Ighalo because we are different players and there are some things I watch in his game and try to add into mine.”He’s more experienced than me, I am still growing up, I am still trying to learn a lot so I think for me to be compared with him I don’t think it’s the right thing for now”.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more

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