Know the latest on business loan trends and statistics with this infographic. Stay on top of the market and make smart decisions for your business today!
These are essential tips on how to increase your chances of getting a business loan.
5 Tips to Increase Your Chances of Getting a Business Loan
Create a solid financial plan
Your financial plan is crucial in getting your loan approved, especially if your current financial position is not great. With financial projections, you have the opportunity to showcase the expected growth of your company and its forecasted expenditures and revenues.
When preparing your financial plan, remember to base it on the previous accounting statements of your company. Think about the strategies that worked and what didn’t and use these strategies to propel growth. If you see pessimistic financial ratios, analyze them and provide concrete steps to improve them.
Maintain a good personal credit score
If you’re establishing a start-up or a new business, your business may not have sufficient history in proving your financial capability. As a result, banks and loan providers would likely check your credit score to ensure that your company would be able to pay its dues.
In maintaining a good personal credit score, pay your bills diligently and on time. Invest your money and keep on saving. There are multiple ways to keep a good personal credit score. Just make sure to avoid habits that ruin it.
Keep your daily bank balance as high as possible
In line with maintaining a good personal credit score, you should also keep your bank balance as high as possible. If your business does not have enough information on its business income, they would usually check the owner’s financial standing. Lenders typically check this to assess your financial capability and if you would have enough cash to pay your loan.
Keep your documents ready and organized
In assessing profitability, banks would commonly analyze your records from the previous years, if possible. Some standard documents they ask for include government registrations (SEC, BIR, and DTI), mayor’s permit, bank statements, proofs of billing, and checking accounts of your enterprise.
Apply for a realistic loan amount
Lenders are usually willing to loan amounts below 40% of your monthly income. For this reason, banks and all other lending platforms require you to submit proof of payment for them to know your monthly income. Your proof of payment will allow them to grant you an amount proportionate to your monthly income.
Given these tips, getting your loan approved can make or break your business. With the hefty and meticulous process involved in the application, it is crucial to find the right company to help you get your funding.
Contact the experts at Zenith Capital to learn how we can help with securing your business’s future.
The healthcare industry in the Philippines can always use a bit of a boost, but creating your own
healthcare business can be quite expensive. There are plenty of expenses like franchise fees, supplies,
and insurance fees that can make it easy to exceed your initial budget.
To ensure that you get everything you need to get your healthcare business hit the ground running, it’s
in your best interests to research viable business loans to give your budget a much-needed boost.
How Healthcare Companies Can Benefit from Business Loans
There are plenty of things in starting a healthcare business that can easily inflate your initial budget.
Here are some things a well-planned business loan can help your company with:
● Purchasing or upgrading medical equipment.
Medical supply pricing can easily change depending on supply and demand. Some of the latest
medical equipment can easily cost millions of pesos. Having a nice safeguard can protect your
budget from sudden expenses.
● Hiring qualified and certified medical practitioners.
The best medical professionals come with equally daunting wage demands. Having enough
financial capacity to operate your business within the first months of operations ensures these
employees remain happy.
● Training programs.
Innovations require medical practitioners to always update their knowledge and techniques.
Having the funds to send your doctors and nurses to relevant training boosts the quality of
healthcare your business provides.
● Pay off invoices.
The first months of your healthcare business will see plenty of invoices from suppliers. Securing
a buffer fund ensures that you don’t run out of important supplies and keep your business
running at full efficiency.
● Securing an emergency fund.
Protect your business from unforeseen circumstances by having enough money to purchase
necessary equipment and supplies in case of emergencies.
● Investing in profitable marketing campaigns.
Enticing customers to trust your brand of healthcare needs a lot more than just word of mouth.
Securing funds to implement both viable offline and online marketing strategies can help drive
your business forward.
Recent times have emphasized how critical the healthcare industry is to our society. Safeguard your
healthcare business’ success by securing its financial footing. Getting a business loan with reasonable
terms can only drive your business forward.