Tips on Completing a Successful Business Credit Application

In order to establish your credit and keep your business attractive to lenders, you’ve got to make sure you build yourself a rock-solid credit application. There are few things to keep in mind when filing an application, so keep your head up and your spirits high.Business Plan: You’ve got to get any lender you’re considering stoked to invest in your company. The perfect plan will include a title page, company description, market analysis, products and services, operations, marketing plan, ownership, management and personnel, funds required to start your company, financial statements and projections, and any necessary appendices. The best plans are going to be able to explain in detail why the business is worth investment and what you can guarantee as its CEO.

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Financial Analysis and Projections: Any bank or personal investor lending you money is going to need to know what kind of finances you’ve already invested in the company and what kind of evidence you can provide to ensure your business’ financial success. You’ll need to provide your lender with a personal financial statement, a balance sheet, a profit and loss statement, and a statement of your business’ cash flow. You’ll also have to know exactly what kind of market you’re dealing with. Yearly projections take research and an understanding of your business’ industry patterns to make an accurate assessment of where your business will be as it continues to function.What the Lender will Review: Just as you know you like a song within the first 15 seconds, a lender is going to know if they want to give you money based on five specific factors: your ability to repay them, the capital you’ve invested in your company, the collateral you’re willing to put up, the reasons why you need the loan, and the overall appeal of the company and the borrower.

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When completing your application, keep in mind your business plan is only a written projection of your needs; what gets an investor interested is your business’ market appeal and your ability to sell it.