Looking for a loan without presenting annual figures? One of the first things entrepreneurs discover when they are looking for financing is that banks do not finance business plans. That would be against banking law if they did. Banks are dealing with private individuals’ money. Do you want your bank to invest your savings in an uncertain start-up? See econgroupinc.net for an observation
If you understand how a banker looks at an entrepreneur, you increase your chance of success in obtaining the loan you need. One thing you have to understand is that a banker views your business objectively and that his or her opinion usually does not fit your vision.
Are you an entrepreneur and looking for financing? Then we definitely recommend you to take a look at Bankate:
Important factors that your banker will consider
Whether you want to start a business or expand your existing business, here are some important factors that a banker considers when applying for a business loan, even without annual figures:
Your personal and professional profile
The first thing a banker will look at is your character and previous business experience. The first impression weighs on. From your clothing and attitude to the way you present your project, the banker tries to assess your ability to manage the business. An updated CV that underlines your skills and expertise with regard to the company must be on your checklist.
The viability of your project
The first question the banker has to answer when looking at your business plan is: “How realistic is it?” The viability of your project is estimated, the opportunities and the risks presented in your business plan, including financial forecasts. But the experience of the management team and the marketing and sales strategy are also important. You need to convince the banker that your business can become viable and that you are ready to do that job.
Annual figures or all financial details of your company
That includes all current and old loans and debts, all bank accounts, investment accounts, credit card accounts. Naturally, supporting information, including tax ID numbers, addresses and full contact details, must also be provided. A starting company can therefore only provide the basic information and not yet annual figures.
Your financial capacity
A solid credit history says a lot about your reliability and the ability to run a successful, profitable business. The willingness to invest a substantial amount of money in your company shows your lender that you are committed to the project. You are therefore prepared to share the risk.
Your knowledge of the market and the competition
The banker wants to see that you have based your plan on a sound analysis that takes into account the market, the competition and the economic context. Do your own research and show that you know the trends, the opportunities and the risks.
As a starting entrepreneur it is impossible to submit annual figures. But borrowing without annual figures is therefore also possible if you can submit sufficient other evidence of your certain financial future to the bank.