The Small Business Specialists
Phone: 13 12 49
Banks want to provide loans to businesses who are solvent and profitable. Generally they consider lending to one-person operations or new businesses without solid track records as high risk.
You need to show the bank that a loan to you is a low risk proposition. To improve your chances of securing a bank loan, thorough planning and management is essential.
Each financial institution has its own criteria for assessing applications. Generally you will need to provide a comprehensive and well supported business plan, accurate financial forecasts and collateral to match the value of the loan.
There are a number of websites like InfoChoice and Canstar which make it easy to compare interest rates and financial products. Just be aware that comparison websites may have commercial arrangements with financial services companies.
Many banks use an initial basic assessment known as the 3Cs: character, cash flow, and collateral. How do you measure up to these:
Both the lender and the borrower face risks when money is borrowed.
It is strongly recommended you seek professional advice from your business advisor and lawyer before entering into any contract.