Acquiring A Loan Can Be A Demanding Process
Written by Jenna Weiner
Likeability, a secondary source of income and a solid business plan can increase a business owner's chances of receiving a loan.
For startups looking to expand, it's paramount that they secure a loan. In order to do so, however, there are some points to keep in mind to convince lenders that their dollars will be safely invested, the San Francisco Chronicle notes.
The media outlet points out that lenders may be looking for a secondary source of repayment in today's market. This is good news for small business owners with a working spouse. Loan officers might want to see day-job income in addition to a separate source used to repay the loan.
Additionally, offering a lender a business plan that includes all the details relevant the company's operations portrays a business-savvy mind. This provides the loan official with the reassurance that the owner is not jumping into a commitment haphazardly.
An often overlooked part of the loan process is the likability of the borrower.
"The lender decides subjectively whether or not you are sufficiently trustworthy to repay the loan or generate a return on funds invested in your company," Denise Beeson, a small business loan officer and consultant, told the news source.
USA Today adds that other loan options, such as microloans, peer-to-peer lending and crowdfunding have gained steam as credit became more difficult to obtain during the economic downturn.
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