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Unlock The Secrets To Bank Loans
Tired of evasive bankers who promise you the sky but can't reveal the reasons of the loan rejection? Wondering whether you should consider trying other banks to obtain the funds which would be used to grow your business?
Every business owner has been down this path before. They had no idea why their bankers rejected their loan application. All the promises in the beginning of how they were going to nail this loan did not happened! To make it worst, they were vague and not forthcoming in their explanation.
Understand the mentality of your banker
You have been with your local bank since the start of your business and you have been happy with them until the recent rejection of your business loan. You wonder whether they have detected that times are less than rosy for you right now. When you probed for answers your banker said that he doesn’t know the exact reason but it could be due to a variety of reasons. What your banker is not telling you is that he has all the information of your business and he has run the ratios and looked at your credit history and finds it lacking. But he can’t tell you about it so he hems and haws and offers you a different type of bank product. Like a whole lot of use that would make to you right now.
Consider looking for another bank, one that does not know that much about you as they would have lesser information to run the ratios. That increases the probability of your loan being approved.
Understand the risk profile of your industry
Bankers are conservative people. That’s because they are dealing with other people’s money. They have to ensure that they are not lending funds to people who are not involved in vices like terrorism, drug trafficking, money laundering and the list goes on. The same goes for certain high risk countries which your company may be dealing with. These are like red flashing lights to reject your loan without even looking at your application.
Be honest about your business and personal liabilities
Nobody likes to be honest especially when it comes to revealing the truth about the amount of liabilities they have. It is an issue of ego and most people would conveniently miss out a few details about their personal loans or the amounts. If you want to have your loan approved, help yourself by telling your banker the truth. The fact is that all these missing details would surface later on in the credit bureau report. The report has an extensive list of details on the credit facilities that you have with the banks in the country and some of which could be detrimental to your loan application.
Prepare for the interviews
Whether the interview is going to take place over the phone or in your banker’s office, be prepared for it. Being prepared means having a brief description of your company’s history, principal activities and most importantly what you intend to use the funds for. Do suit up if you are meeting your banker as you need to be the epitome of success. After all you could be walking away with a large sum with no collateral save for your personal guarantee.