I'am in the middle of securing a home loan to start a business and can get 1/2 of what I'm asking with out a problem, but in order to get the full amount they want to see my business plan, which I have of couse. I Just want to know what key things they are looking for so I can polish it up a bit..
2006-07-17 16:22:29 · 5 answers · asked by FIDEL F 1 in Business & Finance ➔ Credit
They want to see your ability to repay the loan in the future using reasonable assumptions for your business.
2006-07-17 16:29:56 · answer #1 · answered by insuranceguytx 5 · 0⤊ 0⤋
Basically the bank wants to know that you've really thought about the business and are prepared to make it work. To do that, you need to have a clear mission (what your business is all about), know who your customers are or will be (market research), be able to show me how profitable it might be (pro-forma financial statements), and make the bank feel comfortable with your ability to run a business (your qualifications and experience).
Banks don't want to risk their money on a business that might not succeed. And the odds are against you as majority of new businesses fail within the first 3 years.
But having experience in that sort of business, and really showing that you understand the nature of that business and how things work shows you've thought things out fully. That's ultimately what the business plan is designed to do, and what banks want to see.
2006-07-18 07:59:17 · answer #2 · answered by msoexpert 6 · 0⤊ 0⤋
I think the most important message you want to transmit to your bank is demonstrate with emotion your plans for the future and how you intend to get there. Have you thought about who you'll sell your product to? Is your product marketable - is there a fair amount of people who'd be willing and able to buy your product?
Are you reliable to pay bills on time?
They want some demonstration that your plan will become a reality and you will pay your loan within reasonable time. Demonstrate your mature nature and goals to succeed with your business and you will be ok.
2006-07-17 23:31:23 · answer #3 · answered by ccas2200 2 · 0⤊ 0⤋
The best think you can do just starting out is to get the best people on your team. This will help you start off on the right foot and have access to everything that you could need. Check out my "protect and grow" blog for ways to do just that...
Good luck in your venture and congrats...
2006-07-18 19:19:49 · answer #4 · answered by mallicoatdd 4 · 0⤊ 0⤋
They want to see your market research. cost/earnings figures and your break even strategy. Of course all of this means nothing if you can't secure the loan.
2006-07-17 23:27:29 · answer #5 · answered by Ricky J. 6 · 0⤊ 0⤋