What You Need When Getting a Business Loan

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What You Need When Getting a Business Loan

 

Business loans have been solutions that entrepreneurs use when they need funding for a start-up business or even increasing capital of an existing one. Getting a business loan in Singapore may prove to be fruitful so long as it is availed with a goal in mind and a proper plan in managing the loan is in place.

If you are one of those aspiring entrepreneurs who would like to start up a small business, here are two necessary supporting requirements you may need to submit to your prospective lender:

  1. A Good Business Plan

If you would be a licensed money lender granting business loans to your clients, you would want to make sure that the money you would be lending would generate enough income so that the client or borrower can pay you back. One way to ensure that the business has a potential to earn, reviewing a good business plan can help you validate this.

As a borrower, it is important that you should be able to provide a good and strong business plan to convince your lender that he is investing his money well with you. If your business plan isn’t convincing the lender that the business can earn, most probably you would need to look for that much needed cash elsewhere.

  1. Profit and Loss Statements

A profit and loss statement is a good way to support your business plan. If you are an existing business, this document would be or should be readily available to you. If you are a start up business, a forecasted Profit and Loss Statements should be helpful enough to support the business plan. This will help your lender understand and see that you have anticipated all angles possible losses that may occur during the start of your operations.

It is very important that you show reliable and reasonable profit and loss statements. If you put too much icing and blow up your numbers just to make it look good, your lenders will see this and you know where your business loan application will end up. You need to be realistic with your numbers and understand that it will be the basis for your approved loan.