Luckily, it is not a entirely sad situation; dangers may be paid down.
Business owners who is able to effectively use some of the five ‘open secrets’ I’m about to show will considerably raise the likelihood of obtaining the loans they need from their banking institutions.
These methods increase the likelihood that your business can and will pay back the loan (of course, with the interest) in the bank’s eyes.
# 1 – Get a supply agreement (or purchase order) from the credit-worthy consumer
Among the big dangers that stress your bank regarding your application for the loan could be the cap cap ability of one’s business to offer sufficient services or products that may generate income to settle that loan.
A supply agreement from a customer that is creditworthy a business or company with good company performance) shows to your bank that someone is enthusiastic about your products or services and it is happy to spend (and will spend). (picture credit: utilityassist.co.uk)
Certainly one of our most useful examples in this respect is South African business owner, Anna Phosa.
From the tiny pig farm which she were only available in 2004 with $100 and just four pigs, she received a $2.5 million buck loan from Southern Africa’s ABSA Bank to expand her piggery business.
This loan became feasible because Anna secured an agreement to produce 100 pigs per week to Pick ‘n Pay, certainly one of Southern Africa’s supermarket chains that are largest.