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when applying or a business loan

  • 25-01-2011 08:48PM
    #1
    trixyben
    Registered Users, Registered Users 2 Posts: 416 ✭✭


    will be applying or a business loan or a new business that i will be starting soon, just looking to here any experiences that you all have when applying, is there something you missed out on with your business plan that you thought would have helped your case or even something that didnt?

    what are the terms 4 a loan do you have to have a certain % and they loan the rest? do you include working capital into the loan amount? and say you took a loan over 60 months and could pay it back in 36 months would you have to pay any penalties?

    any help here would be great!


Comments

  • #2
    TheCostumeShop.ie: Ronan
    Company Representative Posts: 1,740 ✭✭✭TheCostumeShop.ie: Ronan


    Ask for about double what you need. Chances are they will never give you the full amount for a start up and anyway start ups rarely ask for enough, maybe do half a loan and half as a BCL then you have room to negotiate with them.

    You'll most likely need 100% security on the loan unless you have a track record of success in the particular field your starting in. Don't over estimate your earnings as the bank has a good idea what your competitors are earning.

    Generally they can structure it anyway you want to in terms of the payback period, you'll need to show that you have a history of being good with paying back loans in the past as well as the capability of paying them back even if you have a few off months in sales.

    It's a hard market at the moment to get loans, when you hear about 80% loan successes for SME's what they really mean is they either approve it in such a way that it's not possible to draw it down or approve an amount that isn't enough to meet your requirements. So expect a few no's before you get a yes and never give up until you've asked at least 10 banks.


  • #3
    exaisle
    Registered Users, Registered Users 2 Posts: 2,676 ✭✭✭exaisle


    I'd suggest you employ the services of a professional...far better chance of success if you approach the bank with projected accounts and cash flows.


  • #4
    TheCostumeShop.ie: Ronan
    Company Representative Posts: 1,740 ✭✭✭TheCostumeShop.ie: Ronan


    Well you'd have zero chance of a loan without financial projections and cashflow forecasts


  • #5
    Wezzad
    Closed Accounts Posts: 11 ✭Wezzad


    Credit union best bet for loan, less hastle.

    Go to enterprise board, they will asign
    mentor to assist with financial projections.


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