Is an idea everything you need for a business? Off course not, it’s not all about having a good idea to start a business, but you also need finance. Money is all what it takes for a business idea to materialize. Without sufficient finance it is very difficult for any business to survive.
Q. Do you have an excellent idea, but are you short of finances?
Q. Don’t you know how to get small business finance?
Here are some tips from KuzaBiashara, on how to get small business finance:
Present the idea first
Your idea might be very good, but it has to be interesting and appealing to others too. At times, the idea might be good, but the way you present it to others may not be appealing. Work on how to present your idea and prepare very much in advance. Use your products when you talk about your idea. Demonstrate the use of your products to facilitate better understanding.
Prepare your statement of purpose
Banks look for your statement, while you ask for finance. This statement of yours could play a major role in providing you finance. It is the statement of purpose. Why do you need this finance, will be the question put to you. Give a clear and confident answer to your bank. It should interest them to invest in your idea.
Carry your documents
When you ask for business finance, they look out for certain documents. One needs to see your bank accounts history. They also check the documents of your company’s financial statements and growth. Present the financial growth of your company, where it stands and what you plan to achieve in the next few years. Also prepare a pro-forma statement while you look for small business finance. Be sure about the amount of money you need. Explain how will use that money, where will it go and how will you gain profits.
Choose an appropriate bank
Do a little research about the institutions that provide finance to small businesses. It is necessary that you choose accordingly. Check for the institutions, their terms and conditions and interest rates, etc. Always ask others who have taken small business finance, as what will be the difficulties, where to take from and when to return.
Every bank is scared to provide finance, as it thinks what if they do not repay the loan. This major doubt will stop you from becoming a successful business owner. Thus, you should assure security to the bank. This can help you get finance faster.
Getting a small business finance may be very easy if you prepare in advance. But if you do not prepare in advance, in a well-planned manner it could be the most difficult job. Rehearse before you present yourselves to the bank. Research on what are the written documents required to make sure that you have everything with you. Get all the paper work done and re check them to avoid mistakes and delays.