If you’re going to start a business, then you are probably going to need some money to make it all happen. Perhaps you are lucky enough to be able to self-fund your idea or borrow the money from a trusted friend or family member, but if you’re like most new entrepreneurs, you’re probably going to need to apply for business finance from a bank, investor, or another business lender. Getting funding for your business is no easy task, so before you get started with filling out your application, here are some factors to keep in mind.
You’ll Need to Research First:
Don’t rush into applying for business funding – take some time to research the various options, go over your business plan, and make a solid informed decision about what is going to be the best option for your company. Perhaps you will find that you don’t actually need a lot of money – a business credit card or business capital loan from AdvancedPoint Capital may be enough. You may decide that it’s best to get all the funding from one lender or look into various types of financing together, such as a small business loan plus crowdfunding.
You’ll Be Credit Checked:
If your business is brand new and has no credit rating to show, then it’s likely that you will be personally credit checked by the lender in order to determine how much of a risk you could pose as a business owner. If you have had any credit problems in the past or have a poor credit history, now is the time to go over your credit file and see if there are any areas that might become a problem when applying. If so, then take some time to improve your personal credit score – pay off small debts, check for errors and have them removed, and pay down any personal credit cards.
You’ll Need to Get Your Pitch Right:
If you’ve decided to go down the route of pitching your business idea to an angel investor, then the idea of standing up, talking about your company and asking for a lot of money can be a very daunting experience. So, take your time – practice in front of the mirror, or get a trusted friend or relative to listen to your pitch and critique it if it helps. If you’ve already built up a strong business network, then it may be useful to talk over your pitch idea with other business professionals. It’s not always necessary, but you may also be asked to pitch your idea to the bank or another small business lender, so be prepared.
You’ll Need a Plan:
Finally, once you’ve secured your business funding or it’s looking likely that you are going to, you’ll need a firm plan in mind for what you plan to invest it in and how you are going to repay it, if necessary. It is a wise idea to go over this aspect with a business financial advisor, to ensure you’re getting off to the best start.
When it comes to getting business funding, the right preparation is key!