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5 Tips to Improve Your Chances of Getting a Business Loan

by with One Comment Business Loans

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

  1. 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.

  1. 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.

  1. 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. 

  1. 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.

  1. 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.

Here's how your healthcare company can benefit from a business loan | Zenith Capital

Here’s How Your Healthcare Company Can Benefit from a Business Loan

by with No Comment Business Loans

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.

dos and don'ts of getting a business loan

Do’s and Don’ts of Getting a Business Loan

by with No Comment Business Loans

Do’s and Don’ts of Getting a Business Loan

Welcome back to another installment of the Zenith newsletter, where we bring you the latest in the business loan landscape in the Philippines! (please rewrite and add a summary of what’s included in this month’s newsletter)

This month, we wanted to show you some Do’s and Don’ts when getting a business loan in the Philippines.

Do’s

  1. Thoroughly analyze the different kinds of financing so that you may pin-point the one that best suits your needs.

In determining the best type of funding, it is crucial to know your financial standing, credit score, the amount you will need, and the requirements for each type of debt. Will you use the money to start a small business, purchase an existing one, maintain your firm, or expand your enterprise? 

Having established what you want for your business, you can then explore short, medium, or long-term loans, business line of credit (LOC), a business credit card, asset-based loans, microloans, equity from investors, or crowdfunding.

  1. Keep track of your financial records.

Your business’s receipts, statements of account, purchase orders, bills, tax returns, and invoices are crucial when borrowing money. Most lenders are particular about these records and paperwork because it proves your business’s financial ability to repay your loan in the future. It also allows lenders to determine if your business is worth investing in.

  1. Identify and analyze how you will use the loan.

Planning is essential in attaining success for your business. To identify and analyze how you will use the loan, create a budget or forecast to determine what you will use the money for. To gauge your needed amount, make a business plan indicating how you will expand, your projected operational expenses, expected revenue, etc. Low-balling your loan could make your business struggle but overestimating your costs can leave you with considerable interest and debt. 

  1. Get multiple quotes.

To find the right loan, compare quotes from prospect lenders. Evaluate their interest rates, terms and conditions, repayment options, repayment period, penalties, and if collateral or guarantor is needed. In deciding which lender to deal with, you may also choose to diversify your financers. Getting loans from different banks can spread the risks and give you the best deal that suits your needs.

  1. Do borrow the right amount at the right time.

If you need the loan to make your business stay afloat or expand, apply for it as quickly as possible. Plan the specific time you will be using the money and where it must go. Borrowing too early can lead to unnecessary and high miscellaneous expenses, while borrowing too late can significantly pressure your business and undue the financial process. 

Use previous income statements to project how much you will need to borrow for marketing, operations, equipment, personnel, etc. 

Don’ts

  1. Don’t make false representations to get approval.

If you can’t satisfy the requirements of a loan, don’t apply for it. You might be wasting your time. The chances of your potential lender detecting mismatched data and false documentation are high. Making false representations can also hinder your business credibility and lead to legal issues.

  1. Don’t put your business assets at risk.

There are plenty of available, unsecured loan options on the market, meaning you don’t have to provide security or collateral for a loan. It minimizes the risks of your business. However, if you think this is out of the picture, and your only option is getting a loan with collateral, understand which assets are at stake. 

The risk of debt varies from business to business. Your lender can seize your business’s valuable property, inventory, or equipment, and sometimes, even your personal assets if you cannot fulfill your obligations. Nevertheless, the risk is an inherent and inevitable aspect of any firm. The case of the matter lies in determining if it’s worth your losses in case of a default.

  1. Don’t focus too much on interest rates.

Interest rates are just a tiny fraction of your loan and do not show the entire story. You must also consider its terms, flexibility, and requirements. 

Ask yourself, what period for repayments is ideal for your business cycle. How much would the financier lend, given your company’s financial history and assets? Is the loan flexible with repayments? What guarantee is at stake in case your loan defaults? Answering these questions can help you better prepare your finances and plan the direction of your enterprise.

  1. Don’t underestimate your expenses.

Underestimating your expenses or overstating your revenue can lead to devastating results that you cannot reverse. If you don’t take caution, you might not be able to break even, increasing the risk of your business from bankruptcy. Thus, carefully examine your expenses and estimations and adjust your figures according to inflation, industry trends, political threats, and rivalry among firms.

  1. Don’t repay your loans too quickly.

Contrary to popular belief, loans are not always harmful. If your returns on investment are more significant than interests, then your loan is advantageous and can be leveraged to bring your company great returns. On the other hand, if you decide to repay your loan the minute you earn it, this can limit your company’s plans for expansion.

Getting a loan may be a necessary step in starting your own business, expanding your company, or fulfilling its current expenses. Following these tips is essential in increasing your loan’s likelihood of being approved and making sure that your repayment period is seamless. Additionally, finding the right company to help you get a loan is crucial to make your funding even more accessible.