This blog is brought to you by the Business Development Bank of Canada (BDC), which provides financing, subordinate financing, venture capital and consulting services to more than 30,000 small and medium-sized Canadian businesses.
Bankers are business people too. They are always looking for new customers and would only have to go out of business if they did not sell their product – money.
However, they must make sure not to lend to anyone. Granting a loan involves risks. That’s why bankers will carefully evaluate your repayment ability.
As an entrepreneur, you need to understand this concern and consider it if you want to make a strong and compelling loan application.
What a banker wants to know
To increase your chances of getting a commercial loan, you need to know what a banker is looking for, what he will evaluate, and what you can do to help him say yes, even if it’s the first time. once you apply for funding.
In its risk assessment, a bank will not only analyze your ability to complete a project and repay the loan. Your banker will also review the project itself and ask you questions about your financial projections, guarantees, business plan, personal financial situation, and necessary audits of your project.
To increase your chances of getting a loan, the Business Development Bank of Canada (BDC) recently released a free digital book titled How to Get a Business Loan: A Guide to Preparing for a Compelling Loan Application .
Roadmap to get a business loan
It would be very useful for you to make it easier for the banker to lend you money. This guide gives you detailed advice on how to apply for and, hopefully, get the business loan you need to finance the growth and success of your business.
- the six factors that your banker will consider in assessing your claim;
- the factors to consider in addition to the interest rate;
- three common mistakes entrepreneurs make when they borrow money;
- the questions you should ask bankers when shopping for a loan;
- the types of guarantee and how to determine the one that suits you;
- six ways to strengthen your credibility.
Download your free copy of the digital book How to get a commercial loan: a guide to preparing a convincing loan application .