Many entrepreneurs that apply for loans at banks and other financial institutions get rejected for a variety of reasons. Be sure you are prepared for the following rejection reasons.
*Incomplete loan proposal/documents
*Unrealistic expense forecasts
*Lack of needed collateral
*Underestimated capital requirements
*Poor or incomplete business plan
*Applying at too many lenders at the same time
*Little or no business experience
*Overstated revenue and sales projections
*Can't explain their target market
*Cash flow projection doesn't support repayment
*Borrower argues with lender representative
*Poorly dressed or sloppy presentation
*Can't support document figures
*Trying to enter a dying or shrinking industry
*Poor communication skills
*Unable to explain use of funds properly
*Refuse to sign personal guarantee
Cover these points in advance of meeting with the lender and speak to them with assurance. If you are not completely confident in your plan how can they be?
Barry is a speaker, international business author and helps people start and grow a business or franchise. www.idealetter.com
Monday, August 12, 2013
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