However, being granted of your needed funds is not that easy, especially with banks continuing to put more restrictions on SME loans. There are, however, alternative sources. For instance, there is Stanford Finance Corporation.
Before submitting yourself and your business to the regular scrutiny of lending firms, here are five questions that you might want to ask yourself to help you prepare:
1. How much is my business worth?
The worth of your business is crucial for banks, lenders and investors. Does it deserve the investment you are seeking? Does it have the potential to succeed in the future? Does it have enough leverage to service a loan, as well as survive challenges?
2. What is the funding for?
You have many reasons why you would need funding. What kind of expansion are you seeking for? If you want to hire new employees, what kind of job would you give them and how would they make a difference in your company? If you want to move to a new building, prepare to defend why your old one is no longer working, how much you would need for the rent, redecoration, etc.
3. Can’t you fund your expansion yourself?
Of course, as much as possible, you would not want to owe anyone and be in debt. Project your interest-bearing loan to as little as possible and balance your assets.
4. What is your projected revenue for the next five years?
Investors would only risk their necks for businesses with potential and not just for a firm that is barely surviving. You should have solid plans for your company and confident of your revenue for the coming 5 years or more.
5. Do I have a strong growth management plan and team?
As said before, you should have the potential to grow. You would need a fail proof plan and a credible management team to see this plan through.
Preparing to answer these questions allow you, as an entrepreneur, to be introspective of the strengths, weaknesses, needs and opportunities of your business. Any lending firm will be more impressed with an applicant who knows his business to heart and is able to substantiate any claim he makes about it.
Read more: 5 Questions to Ask Yourself Before You Seek Funding http://www.sooperarticles.com/business-articles/fund-raising-articles/5-questions-ask-yourself-before-you-seek-funding-1328016.html#ixzz32zuTppu9
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