2007-09-29 15:30:28 · 4 answers · asked by Fred 7 in Business & Finance ➔ Small Business
When you show a lending institution your business plan, including your cash flow, projected sales, expenses, they can determine whether you are a good risk to loan money to.
If your numbers are realistic, then you may be a good credit risk and get a good rate of interest - if not, you may pay a higher rate of interest, or not be approved for funding at all.
2007-09-29 15:34:19 · answer #1 · answered by Anonymous · 1⤊ 0⤋
make a biz plan with economic forecast for two-three years percentage it with every person get as a lot cash as feasible from loved ones and peers then exhibit it to diff banks they are going to ask how a lot you're inclined to take a position and if in case you have a useful forecast, and they've a an identical purchaser to evaluate to, they are going to lend as much as seventy five%
2016-09-05 11:48:23 · answer #2 · answered by ? 4 · 0⤊ 0⤋
It demonstrates that you have realistically thought it out.
It shows the potential investor there is a hope of return.
It also demonstrates when that return can be expected.
With many businesses, there is a deficit period or lag.
2007-09-29 15:36:52 · answer #3 · answered by Robert S 7 · 0⤊ 0⤋
They want to know that you know how your business will grow. Business investors don't want to put their money in a business that will probably fail in a year or two.
2007-09-29 15:55:44 · answer #4 · answered by SandraD 3 · 0⤊ 0⤋