Start up loans

Coming up with the idea for a new business is relatively easy funding it well that can be a harder matter to resolve.

First before you can ask a bank or lender for money you need to decide how much money you need how much you can afford to repay and over how long a period.

Do you have premises do you have need a mortgage or will you rent? Will you need equipment will you be able to source this second hand or buy it new. How will advertise your new business? Will you need staff if so how many and what skills? Will they be full time or part time? Will you be entitled to any grants? Do you have a business plan?

If you intend going to a bank make sure you do your homework first .banks like to see plans set out neatly they don’t like to take risks. So you need to remember to make an appointment and turn up at least ten minutes early. The silly thing about banks is the more you look like you need the money the less keen they are to loan it to you

These days most high-street banks provide free business start-up packs and even CDs to help you work through your business plan and cash flow statement. Use them. Not only will it impress your bank that you have taken the trouble to present your case in the suggested manner, it might also prove a useful exercise. Don’t get flustered remember you will need to keep a calm head.

Banks like to know you are risking something to and would expect you to be putting some of your own money into your new business. It is in the past that banks funded 100% start up costs. You may need to put up your house as an asset for security.

You will need to show you have researched your market that you can back up your figures know your completion and explain why customers will use you. Be prepared for some tough questions you will have to show you are able to market and sell yourself as a business person. It may seem a bit intimidating but it will be worth it to get your start up loan and be your own boss.

Remember this is as much about you interviewing the bank as the bank interviewing you. If it does not feel right try another bank.